Taxes Consolidation Act 1997 section 1025

Maintenance in case of separated spouses

Section 1025 sets out the income tax treatment of maintenance payments made under legally enforceable arrangements between parties to a marriage who are living apart, divorced or whose marriage has been annulled.

• Maintenance payments to a former spouse are made gross (without deduction of tax), are deductible by the payer and taxable on the recipient under Schedule D Case IV.
• Maintenance payments for the benefit of a child are made gross, are not the child's income and remain the payer's income with no deduction available.
• A payment under a maintenance arrangement is deemed to be for the benefit of the other spouse unless a specific sum is allocated for the child's benefit in the arrangement.
• The general income tax provisions governing personal allowances, reliefs and repayments apply to the payer's deduction for maintenance payments.