Is there Irish tax on UK maintenance payments?

Katzi

In Ireland maintenance payments are tax deductible. They are paid gross. The recipient is liable for tax on the maintenance received.

In the UK maintenance payments are not tax deductible any more. So an Irish tax resident getting maintenance from a ex-spouse in the UK is in receipt of net maintenance payments.

Does anyone know if these net maintenance payments from UK income are subject to taxation in Ireland?

Any help would be most welcome. Thx.

Stheno

All spousal maintenance is subject to tax on the part of the person receiving it in Ireland, it's income after all.

Child maintenance is exempt from tax.

Katzi

Is there not a double taxation agreement in place between UK and Ireland? This income will have already been taxed in UK. Or does that not matter? I am only talking about maintenance for an ex-spouse, not child maintenance.

Alan Shore

Stheno wrote: »

All spousal maintenance is subject to tax on the part of the person receiving it in Ireland, it's income all.

Only legally enforceable maintenance qualify for an income deduction in Ireland. Therefore only legally enforceable maintenance payments are taxed.
http://www.revenue.ie/en/tax/it/reliefs/deduction-for-maintenance-payments.html#section1

Katzi

Thanks for that. This is is true but does not help answer to my question.

Assume the maintenance payments are legally enforced in the UK and tax has been paid in the UK where no tax deduction is allowed for maintenance payments. Are these UK taxed maintenance payments subject to further Irish tax if paid to an Irish tax resident?

Stheno

Katzi wrote: »

Thanks for that. This is is true but does not help answer to my question.

Assume the maintenance payments are legally enforced in the UK and tax has been paid in the UK where no tax deduction is allowed for maintenance payments. Are these UK taxed maintenance payments subject to further Irish tax if paid to an Irish tax resident?

I would imagine, expanding on my post above that the Revenue would treat it as income regardless of whether or not it has previously been subject to tax outside the jurisdiction.

As the other person is not subject to Irish tax to which the maintenance tax rules apply, I believe you are liable for tax on any spousal maintenance you receive here.

Having ended up on the wrong end of a revenue judgement about maintenance, I suggest you contact them asap to clarify it.

Katzi

Thanks, I most certainly will be taking their advice. Just trying to assemble as much background info as possible before talking to them.

Once different countries involved things can get very tricky and many many grey areas seem to emerge. Just when you thought it was safe to get back into the water..............

Alan Shore

It appears that legally enforceable maintenance is taxable.