1031I. Method of apportioning reliefs and charging tax in cases of separate assessments.

(1) This section shall apply where pursuant to an application under section 1031H, civil partners are assessed to tax for a year of assessment in accordance with that section.

(2) (a) Subject to subsection (3), the benefit flowing from the personal reliefs for a year of assessment may be given either by means of reduction of the amount of the tax to be paid or by repayment of any excess of tax which has been paid, or by both of those means, as the case requires, and shall be allocated to the civil partners—

(i) in so far as it flows from relief under ^[2]>sections 244 and 372AR^<[2][2]>sections 244, 372AR and 372AAB^<[2], in the proportions in which they incurred the expenditure giving rise to the relief,

(ii) in so far as it flows from relief under sections 461, 464, 465 (other than subsection (3)) and 468, in the proportions of one-half and one-half,

(iii) in so far as it flows from relief in respect of a child under section 465(3) and relief in respect of a dependent relative under section 466, to the civil partner who maintains the child or dependent relative,

(iv) in so far as it flows from relief under section 467, in the proportions in which each civil partner bears the cost of employing the individual in respect of whom the relief is given,

(v) in so far as it flows from relief under section 469, in the proportions in which each civil partner incurred the expenditure giving rise to the relief,

(vi) in so far as it flows from relief under sections 470, 470B and 473, to either civil partner according as he or she made the payment giving rise to the relief,

(vii) in so far as it flows from relief under section 471, in the proportions in which each civil partner incurred the expenditure giving rise to the relief,

(viii) in so far as it flows from relief under sections 472, 472A and 472B, to either civil partner according as the emoluments from which relief under those sections is granted are emoluments of that civil partner,

(ix) in so far as it flows from relief under sections 473A, 476 and 477, in the proportions in which each civil partner incurred the expenditure giving rise to the relief,

(x) in so far as it flows from relief under section 481, in the proportions in which each civil partner made the relevant investment giving rise to the relief,

(xi) in so far as it flows from relief under section 848A(7), to each civil partner according as he or she made the relevant donation giving rise to the relief,

(xii) in so far as it flows from relief under Part 16, in the proportions in which each civil partner subscribed for the eligible shares giving rise to the relief, and

(xiii) in so far as it flows from relief under paragraphs 12 and 20 of Schedule 32, in the proportions in which each civil partner incurred the expenditure giving rise to the relief.

(b) Any reduction of income tax to be made under section 188(5) for a year of assessment shall be allocated to each civil partner in proportion to the amounts of income tax which but for section 188(5) would have been payable by both civil partners for that year.

(c) Subject to subsection (4), Part 1 of the Table to section 15 shall apply to each of the civil partners concerned.

(3) Where the amount of relief allocated to a civil partner under subsection (2)(a) exceeds the income tax chargeable on his or her income for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of his or her civil partner for that year, and where the amount of relief allocated to that civil partner under that paragraph exceeds the income tax chargeable on his or her income for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of the first-mentioned civil partner for that year.

(4) Where the part of the taxable income of a civil partner chargeable to tax in accordance with subsection (2)(c) at the standard rate is less than that of his or her civil partner and is less than the part of taxable income specified in column (1) of Part 1 of the Table to section 15 (in this subsection referred to as the “appropriate part”) in respect of which the first-mentioned civil partner is so chargeable to tax at that rate, the part of taxable income of the civil partner other than the first-mentioned civil partner which by virtue of subsection (2)(c) is to be charged to tax at the standard rate shall be increased, to an amount not exceeding the part of taxable income specified in column (1) of Part 3 of the Table to section 15 in respect of which an individual to whom that Part applies is so chargeable at that rate, by the amount by which the taxable income of the first-mentioned civil partner chargeable to tax at the standard rate is less than the appropriate part.