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Individuals and married couples

A married person can opt to be assessed for tax purposes via:

(a) joint assessment on the husband (s 1017) or wife (s 1019), separate assessment (s 1023), or

(b) single assessment (s 1016).

A individual who is separated or divorced and not remarried, may by agreement with the ex-partner, opt for joint or separate assessment (s 1026).

The current tax rates are the standard rate (20%) and the higher rate (40%).

The 2016 standard rate bands are: €33,800 in the case of an individual, €37,800 in the case of a one parent family and €42,800 in the case of a married couple (s 15(2)). In the case of a dual income married couple, the €42,800 rate band may be increased by the lower of:

(a) €24,800, and

(b) the income of the second spouse.

The maximum standard rate band a dual income married couple may have is €67,600. However, the maximum part of the standard rate band that may be transferred between the partners of a dual income married couple in a tax year is €42,800.

Unincorporated bodies and trustees

Income of an unincorporated body or trustee (including a personal representative of a deceased person’s estate) is taxed at the standard rate (s 15(1), 799802).

Undistributed income of an accumulatory trust is subject to a 20% surcharge (s 805).