Jennifer and Martin are civil partners. They do not have any children. They have chosen to be separately assessed.
In 2024, Jennifer received employment income of €50,200. Martin received investment income of €34,200.
As their tax was calculated separately during the year, the first €42,000 of each of their income was taxed at the standard rate of 20%. Any income above this limit was taxed at the higher rate of 40%.
Jennifer’s 2024 Tax Credits
Credits | Amounts |
Single Person Tax Credit |
€1,875 |
Employee PAYE Tax Credit |
€1,875 |
Total |
€3,750 |
Jennifer's 2024 Income Tax liability
|
Values | Amounts |
Total income |
|
€50,200 |
Income taxed @ 20% |
€42,000 |
€8,400 |
Income taxed @ 40% |
€8,200 |
€3,280 |
Total Income Tax |
|
€11,680 |
Less credits |
|
€3,750 |
Tax payable |
|
€7,930
|
Martin's 2024 Tax Credits
Credits | Amounts |
Single Person Tax Credit |
€1,875 |
Total |
€1,875 |
Martin’s 2024 Income Tax liability
|
Values | Amounts |
Total income |
|
€34,200 |
Income taxed @ 20% |
€34,200 |
€6,840 |
Total Income Tax |
|
€6,840 |
Less credits |
|
€1,875 |
Tax payable |
|
€4,965 |
Their combined payable tax in 2024 is €12,895 (€7,930 + €4,965).
As Martin’s income was less than €42,000, €7,800 of his standard tax band was unused during the year (€42,000 - €34,200). Under separate assessment he can transfer his unused standard rate band of €7,800 to Jennifer.
Their combined payable tax in 2024 is €12,895 (€7,930 + €4,965).
As Martin’s income was less than €42,000, €7,800 of his standard tax band was unused during the year (€42,000 - €34,200). Under separate assessment he can transfer his unused standard rate band of €7,800 to Jennifer.
If they are taxed under joint assessment during the year, the first €49,800 of her income earned could be taxed at 20%. Jennifer can accept up to €9,000 (€51,000 - €42,000) of Martin’s unused standard rate band, subject to the income levels in the year —in this case the maximum transferable amount was €7,800.
Calculation for maximum transferable amount
Credits | Amounts |
Income taxable at 20% under separate assessment (€53,000 + €31,000) |
€84,000 |
Less income taxable at 20% calculated separately (€42,000 + €34,200) |
(€76,200) |
Total |
€7,800 |
Jennifer can recalculate her 2024 Income Tax with Martin’s unused standard rate band.
Jennifer’s 2024 Tax Credits
Income | Amounts |
Single Person Tax Credit |
€1,875 |
Employee PAYE Tax Credit |
€1,875 |
Total |
€3,750 |
Martin’s 2024 Tax Credits
Credits | Amounts |
Single Person Tax Credit |
€1,875 |
Total |
€1,875 |
Jennifer's recalculated 2024 Income Tax liability
|
Values | Amounts |
Total income |
|
€50,200 |
Income taxed @ 20% |
€49,800 |
€9,960 |
Income taxed @ 40% |
€400 |
€160 |
Total Income Tax |
|
€10,120 |
Less credits |
|
€3,750 |
Tax payable |
|
€6,370 |
Their revised combined payable tax in 2024 is €11,335 (€6,370 + €4,965).
Jennifer and Martin transfer the rate bands by completing an Income Tax Return (Form 12) online using myAccount.