485FA Adaptation of provisions relating to taxation of married persons.

Where this Chapter applies to an individual or his or her ^[2]>spouse^<[2][2]>spouse or civil partner^<[2] for a tax year, and—

(a) an election under ^[3]>section 1018 (including a deemed election under that section)^<[3][3]>section 1018 or 1031D (including a deemed election under either of those sections)^<[3] to be assessed to tax in accordance with ^[4]>section 1017^<[4][4]>section 1017 or, as the case may be, section 1031C^<[4] has effect for the tax year,

(b) an application under ^[5]>section 1023^<[5][5]>section 1023 or, as the case may be, section 1031H^<[5] has effect for that year, or

(c) the provisions of section 1019(3) apply for that year,

in respect of the individual and his or her ^[2]>spouse^<[2][2]>spouse or civil partner^<[2], then the following provisions shall apply:

(i) the definition of “chargeable tax” in section 3(1) shall apply as if the references to total income were references to taxable income;

(ii) subsection (1) of section 1017 shall apply as if the following paragraph was substituted for paragraph (a) of that subsection:

“(a) the husband shall be assessed and charged to income tax, not only in respect of his taxable income (if any) for that year, but also in respect of his wife’s taxable income (if any) for any part of that year of assessment during which she is living with him and, for this purpose and for the purposes of the Income Tax Acts, the last-mentioned income shall be deemed to be his income,”;

^[6]>

(iia) subsection (1) of section 1031C shall apply as if the following paragraph was substituted for paragraph (a) of that subsection:

‘(a) the nominated civil partner shall be assessed and charged to income tax, not only in respect of his or her taxable income (if any) for that year, but also in respect of his or her civil partner’s taxable income (if any) for any part of that year of assessment during which he or she is living with the nominated civil partner and, for this purpose and for the purposes of the Income Tax Acts, the last-mentioned income shall be deemed to be the income of the nominated civil partner,’;

^<[6]

(iii) the references to total income in—

(I) subsection (3),

(II) paragraph (a) of subsection (4) other than the references in subparagraph (ii) of that paragraph, and

(III) subsection (4)(b),

of section 1019 shall be construed as references to taxable income;

(iv) the reference to so assessed and charged for each subsequent year of assessment in section 1019(4)(a) shall be construed as a reference to—

(I) assessed and charged in respect of her taxable income (if any) and the taxable income (if any) of her husband for each subsequent year of assessment, where this Chapter applies for a tax year to either or both spouses, and

(II) assessed and charged in respect of her total income (if any) and the total income (if any) of her husband for each subsequent year of assessment, in any other case;

(v) the reference to so assessed to income tax for the year of assessment in which that notice or application is withdrawn and for each subsequent year of assessment in section 1019(4)(b) shall be construed as a reference to—

(I) assessed to income tax in respect of her own taxable income (if any) and the taxable income (if any) of her husband for the year of assessment in which that notice or application is withdrawn and for each subsequent year of assessment, where this Chapter applies for a tax year to either or both spouses, and

(II) assessed to income tax in respect of her own total income (if any) and the total income (if any) of her husband for the year of assessment in which that notice or application is withdrawn and for each subsequent year of assessment, in any other case;

and

(vi) where paragraph (a) or (c) apply to an individual and his or her ^[7]>spouse^<[7][7]>spouse or civil partner^<[7] for a tax year, then to the extent that—

(I) the benefit flowing from such deductions as are specified in the provisions referred to in Part 1 of the Table to section 458 for the tax year exceeds the income tax chargeable on the individual’s income for the tax year, the balance shall be applied to reduce the income tax chargeable on the income of the individual’s ^[7]>spouse^<[7][7]>spouse or civil partner^<[7] for that year, and

(II) the benefit flowing from such deductions exceed the income tax chargeable on the ^[8]>spouse’s^<[8][8]>spouse’s or civil partner’s^<[8] income for that year, the balance shall be applied to reduce the income tax chargeable on the income of the individual for that year.