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) £3,510 for the 2020/21 tax year (£3,450 for 2019/20).
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.
**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
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
Time for paymentTwo statutory rules apply on death:•tax is ‘due’ six months after the end of the month of death and carries interest from the ‘due’ date until paidThere is a possibility of payment by instalments, but this applies to certain types of property only ― see the ‘Availability of
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
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.