asked the Minister for Finance if he will state the position, in relation to the personal allowances that may be claimed against income tax, of (a) a working married man whose marriage took place within the State but who has subsequently been granted a divorce in another jurisdiction; and (b) a working married women whose marriage took place within the State but whose husband has subsequently been granted a divorce in another jurisdiction.
Written Answers. - Income Tax Allowances.
336.
It is assumed that the question refers to the main personal allowances.
If a husband and wife are separated in such circumstances that the separation is likely to be permanent each would be entitled, subject to compliance with the normal conditions, to the single allowance which under the proposals announced in this year's budget amounts to £865 for the year 1978-79.
337.
asked the Minister for Finance the estimated number of working married women who are the sole financial support of their families; and the personal tax allowance which may be claimed by a working married woman who is the sole income-earner in her family.
Information is not available to enable an estimate to be made of the number of working married women who are the sole financial support of their families.
As regards the claiming of personal tax allowances, the position is that, in the absence of a claim for separate assessment, a wife's income is chargeable on her husband who is entitled to claim the personal allowances due. These allowances are set against the couple's total income.
Where the couple's only income is that of the wife the income is chargeable on the husband but the total personal allowances are set against that income.
For the purposes of collection of tax under PAYE in cases where the wife is working it is the practice to allocate to the wife the working wife's allowance and any allowance due in respect of her social welfare contributions or expenses relating to her employment. The other allowances, in the absence of a request by him to the contrary, are allocated to the husband. Where the wife is the sole income earner in the family the total allowances due may be allocated to her.
338.
asked the Minister for Finance if he will state the position in relation to the personal allowances that may be claimed against income tax, of (a) a married woman who is in receipt of no money from her husband and who is in paid employment; (b) a married man who is separated from his wife and is making no financial payment towards her upkeep.
The general position regarding the claiming of allowances by a married couple, and the allocation of these allowances for purposes of PAYE where both spouses are earning, is set out in the reply to Question No. 337. As regards (a) of the present question the amount of tax free allowances set against a wife's income for PAYE purposes is not affected by the amount of money she receives from her husband.
As regards (b) of the question, if a husband and wife are separated in circumstances that the separation is likely to be permanent, each spouse is charged to tax in the same way as he or she would have been charged to tax if they were not married.
339.
asked the Minister for Finance the personal allowances that may be claimed against income tax (a) by a married man whose wife has been in paid employment but is now unemployed; and (b) by a married woman whose husband has been in paid employment but is now unemployed.
The position regarding the claiming of allowances by a married couple where the wife is earning, and the allocation of those allowances for purposes of PAYE, is set out in the reply to Question No. 337. Where the allowances have been so allocated for purposes of PAYE, and (a) the wife becomes unemployed, any unused balance of allowances allocated to her may be claimed by the husband, (b) the husband becomes unemployed, any unused balance of the allowances allocated to him may (i) be passed on to his wife, or (ii) retained by him for the purpose of claiming a refund of tax already paid by him.
These arrangements are followed except in a case where there is a claim to separate assessment either by the husband or by the wife. Where such a claim is made, the allowances are apportioned between the spouses in accordance with the provisions of section 193 of the Income Tax Act, 1967. Where such an apportionment is made, the benefit of any unused balance of allowances apportioned to one spouse is passed on to the other spouse.