The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Maintenance payments are payments made by a taxpayer to their former or separated spouse for the maintenance of that former spouse or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the payments must be made by virtue of a court order or an assessment by the Child Support Agency (CSA).
Maintenance payments are always paid gross (ie tax is not withheld at source by the payer) and they are not taxable in the hands of the recipient.
The payer receives tax relief via a 10% tax reduction on the lower of (a) the amount paid and (b) £3,530 for the 2021/22 tax year (£3,510 for 2020/21).
Note that although maintenance payments were considered by the Office of Tax Simplification (OTS) as part of its review of pensioner taxation, due to the natural decline in the number of claimants, it was decided that simplification of this relief was not a priority. Consequently, it has not been taken forward as part of the key recommendations.
The payer of a maintenance payment will only obtain tax re
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
The rent-a-room scheme was introduced in the early 1990s to encourage homeowners to take in lodgers.Fundamentally, the rent-a-room scheme is a relief which means that the rent received by an individual from a lodger (up to a prescribed limit) can be exempt from income tax. If the gross rents are
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.