Dáil Éireann - Volume 517 - 11 April, 2000

Written Answers. - Tax Allowances.

198. Mr. Penrose asked the Minister for Finance the position from a tax allowance perspective of a person who is separated and is paying £120 maintenance per week; if he is entitled to claim this amount in his tax free allowance for the tax year 2000-01; and if he will make a statement on the matter. [10472/00]

Minister for Finance (Mr. McCreevy): I am informed by the Revenue Commissioners that where (i) maintenance payments are made by one spouse for the benefit of the other party to the marriage and (ii) the maintenance payments are made under a legally enforceable maintenance arrangement, such payments are allowable as a deduction from the income of the payer for tax purposes but are chargeable to income tax in the hands of the recipient.

Where an individual can claim a tax deduction for the maintenance payments, he or she is not entitled to the marriage allowance.

Where maintenance payments are made for the benefit of a child, the person making the payments is not entitled to claim a deduction for income tax purposes.