Sean Fleming
Ceist:316. Deputy Seán Fleming asked the Minister for Finance to respond to correspondence (details supplied); and if he will make a statement on the matter. [34240/25]
Amharc ar fhreagraTuesday, 24 June 2025
Ceisteanna (316)
Freagraí scríofa
Section 1025 of the Taxes Consolidation Act (“TCA”) 1997 provides for the tax treatment of payments made under a maintenance arrangement by one party of a marriage to another, where parties to the marriage are not jointly assessed to tax.
A maintenance arrangement for the purposes of section 1025 TCA 1997, means an order of a court, rule of court, deed of separation, trust, covenant, agreement, arrangement, or any other act giving rise to a legally enforceable obligation and made or done in consideration or in consequence of:
• the dissolution or annulment of a marriage, or
• the separation of the parties to a marriage where such separation is expected to be permanent.
Where a payment made under a maintenance arrangement is for the benefit of a child, section 1025 TCA 1997 specifically provides that there is no tax relief available for the paying spouse. The reason for this treatment is that maintenance payments in respect of children are treated the same way as if the taxpayer was providing for the child or children out of his or her after-tax income, which is in line with the tax treatment for all other parents, where the cost of maintaining their child or children is not tax deductible.
Voluntary maintenance payments are not legally enforceable; therefore, they are ignored when calculating either spouse’s tax liability. Where such payments are made in respect of a child, they are not taxable in the hands of the child or the receiving spouse, and there is no tax relief available to the paying spouse.
As the maintenance paid in this case is in respect of your constituent’s children, there is no tax relief available to him on such payments.
Further information on the taxation of maintenance payments can be found at the link below:
Tax and Duty Manual Part 44-01-01 - Income tax treatment of married persons and civil partners: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-44/44-01-01.pdf
Section 462B TCA 1997 provides for the Single Person Child Carer Tax Credit (“SPCCC”). Subject to the conditions of section 462B TCA 1997 being met, the SPCCC is available to a single person who has a qualifying child resident with him or her for the whole or greater part of the year of assessment.
Based on the limited information provided, it would appear the constituent is not entitled to claim the SPCCC as, based on the information provided, his children do not reside with him for the greater part of the year.
Further details on the SPCCC are set out in Tax and Duty Manual Part 15-01-41, which can be located at the link below:
Tax and Duty Manual Part 15-01-41 - Single Person Child Carer Credit: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-41.pdf
With regard to the details provided, if the constituent has any further queries by reference to the facts and circumstances of the specific case, he can contact Revenue using MyEnquiries. MyEnquiries is a free and easy to use online facility available to both PAYE taxpayers, through MyAccount, and self-assessed taxpayers, using ROS.