Married Persons Tax Credit

speakswan

Hi
A theoretcial question to exercise the brain

Two people married, jointly assessed for a few years both spouses have Irish income in their own right. The husband decides to move to France for the sun and to start up a small business. He is there more than 200 days a year for the last couple of tax years and becomes non-resident in Ireland & has to register himself for tax in France due to the business. Meanwhile wife remains in Ireland & pop out every other weekends to see him, they remain happily married but she remains happily resident in Ireland but will move to retire with him in France in a couple of years.

Q) Can she claim the married person allowance, she is still married & resident even though husband is not resident?

Am I right to say the husband will lose his personal credit but will still have to pay tax on his Irish income but his French income will not be taxable in Ireland?

Mr. Incognito

Revenue have a tax briefing on this issue- you can look it up if you want but from memory if a non resident spouse has foreign income you will have to treat them as seperately assessed.

If the foreign income falls within the charge to Irish tax then you can claim the married credit.

If you have a non resident spouse with no income the briefing specifically disallows the married credit but a case was taken in England I believe where it was upheld.