Tax benefits for co-habiting couples

M

marsplastic

Guest
I have searched for this but may have missed so apologies. My query is this; if someone and their partner are not married but in the process of buying a house together and are therefore co-habiting, is there any tax benefits that can be claimed?
 
Not really. Each is treated as single for income tax purposes. Each will get their personal & other tax credits appropriate to their work situation. Each will be eintitled to Tax Relief at Source on mortgage up to the statutory limits.

This may be viewed by some as a disadvantage where there are two incomes, one over the cut-off point to the higher rate and one under the cut-off point, where married couples could adjust the cut-off ( to the maximum allowable) to reduce tax on the higher earner but unmarried couples can not do that.
 
I thought so as i couldn't find anything on the net. Thats pretty disgraceful in this day and age. If two people buy a house together then surely that is proof enough that 2 people are 'in it together', so to speak. It is actually quite discriminating...what if 2 people didnt believe in marriage or were gay? I'm not sure but i worked out that 2 individuals earning close to 70 k combined would save about 150 in taxes each month. Is this correct? If it is then this would be of great benefit to two struggling first time buyers.
 
marsplastic said:
I'm not sure but i worked out that 2 individuals earning close to 70 k combined would save about 150 in taxes each month. Is this correct?
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Depends on the split of the €70K between the two. As outlined above, with a married couple where one spouse is on the high rate of tax and the other is on the low rate there is some benefit due to the "married couple - both spouses with income" increment in the standard rate band of up to €25K. See [broken link removed] and see about individualisation. No offence but if you want to rant about the situation then Letting Off Steam is the place to do it.
 
For 2007 the Standard Rate Cut-off Point (SRCOP) is €34,000 single. €68,000 married with maximum of €43,000 - €25,000 transfer of SRCOP. So theres a maximum of €34,000 to €43,000 transfer available from single & 2 incomes to married and 2 incomes or €9,000 potentially which could be taxed at 20% rather than 41% which is €1,890 in tax pa or €157.50 pm. All depending on the pay scenarios. So yes, you're fairly on the ball with the amount there.

As to the whys and wherefores of the law, been there, done that, pirated the DVD, etc.etc.etc.
 
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No steam to let off here clubman! Thanks fellas. Line drawn!
 
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