Standard Rate Cut Off for married couple

[Duke of Marmalade]

From the Revenue website:

Can the income of the "lower earner" be investment income? Can it include old age pension?

 

[S class]

The rate band includes unearned income (investment and rental) and State pension.

Unearned income cannot be used to claim the Employee Tax Credits or Earned Income Tax Credits.

The State pension can be used to claim Employee Tax Credits.

 

[Duke of Marmalade]

@S class Thanks. So, just to be certain, the supplementary is: let's say an unnamed duke is paying 40% tax and he moves an investment income bearing share to the duchess (who has no other income of her own) does the duchess pay only 20% tax on that investment income up to the level indicated in OP?

 

[S class]

Yes she would only pay 20% up to the band level allowed where both partners are employed.

Are you currently claiming contributory state pension ?

Does the duchess presently claim the contributory pension ?

If you currently claim the CSP and the duchess has no CSP or other income, you could qualify for an increase for a qualified adult.

If you transfer investments to the duchess you risk disqualifying yourself for the increase for a qualified adult.

 

[Duke of Marmalade]

Yes she would only pay 20% up to the band level allowed where both patners are employed.

Are you currently claiming contributory state pension ?

Does the duchess presently claim the contributory pension ?

If you currently claim the CSP and the duchess has no CSP or other income, you could qualify for an increase for a qualified adult.

If you transfer investments to the duchess you risk disqualifying yourself for the increase for a qualified adult.

Thanks a lot. Duchess wouldn't make it as a "qualified adult"