Independent Taxation Manual - IN955

1990-91 and later years

The marriage ends with the decree absolute, not the decree nisi.<

RE1090-1091 has more details.

Once the marriage has ended the couple are treated as two unrelated people for tax purposes.

If the couple separated permanently before the divorce but in the same tax year you should use the Table for the year of separation. See also the note at * below.

If the couple separated permanently in an earlier year you need take no special action for the year of divorce apart from noting the points at * below.

* The two following transitional allowances cannot be due for the year after the divorce

· Fixed Age allowance

· Transitional Married Couple's allowance.

He gets the level of Personal allowance appropriate for his age.

He cannot transfer unused Personal allowance to his wife.

He may be able to claim Fixed Age allowance and give a notice for Transitional Allowance for Wives.

The allowance is set against his income for the whole year.

She gets one allowance appropriate for her age. It is set against her income for the whole year.

She cannot transfer any surplus allowance to her husband.

He gets the level of Married Couple's allowance appropriate for the age of the older of himself and his wife provided they did not separate permanently before the start of the year in which the divorce became absolute. Where a couple separate after 5 April 1990 Married Couple's allowance is only due if

at some time in the year the husband is married to his wife and at the same time, he lives with her.

Where a couple separate before 6 April 1990 Married Couple's allowance may be due for 1990-91 and later years on a transitional basis if he wholly maintains her with payments which do not qualify for tax relief.

For 1993-94 onwards a form 18 election will be effective if the couple did not separate permanently before the start of the year in which the divorce became absolute. If such an election is effective one half or all of the basic Married Couple's allowance (that is at the level for those aged under 65) will go to his wife. He keeps any balance of the full allowance.

For years up to and including 1993-94, where the allowance is due it is set against his income for the whole year.

For 1994-95 to 1999-2000 (allowance abolished for 2000-01 onwards if both partners in couple born after 5 April 1935) or 1994-95 onwards (if either partner in couple was born before 6 April 1935, see In400A) the allowance is given in terms of tax as a deduction from his Income Tax liability for the whole year.

He can never get Married Couple's allowance for his divorced wife for the year after divorce.

He can transfer any surplus Married Couple's allowance to his wife (unless the couple separated before 6 April 1990 and Married Couple's allowance is given on a transitional basis).

For 1993-94 onwards he can receive her surplus back.

She cannot claim the Married Couple's allowance. But if they did not separate permanently before the start of the year in which the divorce became absolute she can get

for any year, any surplus Married Couple's allowance transferred from her husband

for 1993-94 onwards, under a form 18 election, half or all of the basic Married Couple's allowance (that is at the level for those aged under 65.)

For years up to and including 1993-94 the allowance is set against her income for the whole year.

For 1994-95 to 1999-2000 (allowance abolished for 2000-01 onwards if both partners in couple born after 5 April 1935) or 1994-95 onwards (if either partner in couple was born before 6 April 1935, see In400A), the allowance is given in terms of tax as a deduction from her Income Tax liability for the whole year.<

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She can transfer any surplus back to her husband.

If the couple separated in an earlier year he can claim the allowance if he had a qualifying child resident with him for at least part of the year.

If the couple did not separate permanently before the start of the year in which the divorce became absolute there are two possible ways in which the allowance could be due.

For any year he can claim the allowance if at any time in the year he lives with his wife who is totally incapacitated throughout the year. A qualifying child must be resident with him for at least part of the year. He can get the full amount of this allowance in addition to any Married Couple's allowance due to him.

For 1993-94 onwards he can claim the allowance if

he gets less than the full amount of the basic Married Couple's allowance (that is at the level for those under 65) because of a form 18 election, and a qualifying child is resident with him in the year, for at least part of the period after the date of separation.

The amount of the allowance is reduced by the amount of any Married Couple's allowance he gets.

He cannot transfer surplus allowance to his wife.

For years up to and including 1993-94 the allowance due is set against the husband's income for the whole year.

For 1994-95 to 1999-2000 the allowance is given in terms of tax as a deduction from his Income Tax liability for the whole year. Allowance abolished for 2000-01 and later years, see In551A.

She may be able to claim the allowance if she has a child resident with her at some time in the period from date of the divorce (or any earlier permanent separation) until the end of the year.

For 1993-94 onwards, if this is also the year of permanent separation, the amount of the allowance she gets is reduced by the amount of any Married Couple's allowance she receives under a form 18 election.

Surplus allowance cannot be transferred.

For years up to and including 1993-94 any allowance due is set against the wife's income for the whole year. For 1994-95 to 1999-2000, the allowance is given in terms of tax as a deduction from her Income Tax liability for the whole year. Allowance abolished for 2000-01 and later years, see In551A.

He qualifies for the allowance in the normal way.

He can transfer any surplus allowance to his wife for any year in which he lives with her. These conditions can be met for part of a year.

She qualifies for the allowance in the normal way.

She can transfer any surplus allowance to her husband for any year in which she lives with him. These conditions can be met for part of a year.

He can never have this allowance. There is no Widower's Bereavement allowance.

The allowance is not due if the husband dies after the couple have divorced.

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