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Spousal Maintenance - is it taxable in UK?

notmrsanymore
Posted by
Junior Member

02 Jun 16 #479232 by notmrsanymore

Topic started by notmrsanymore

Hello, I am about to start the divorce process and would like to know whether spousal maintenance is treated as a taxable income to the recipient in the UK? If so, how would this work as I am a PAYE? Would it be better to ask for a higher amount as child maintenance and a lower amount as spousal?

fairlyhas
Platinum Member

02 Jun 16 #479239 by fairlyhas

Reply from fairlyhas

No tax is payable as tax has already been paid on it.

notmrsanymore
Posted by
Junior Member

02 Jun 16 #479241 by notmrsanymore

Reply from notmrsanymore

Ok so my ex would be taxed on his wages and then the spousal maintenance would be paid to me? If it was an ongoing monthly amount I mean not a lump sum

LittleMrMike
Platinum Member

03 Jun 16 #479265 by LittleMrMike

Reply from LittleMrMike

The payer can''t normally get tax relief on maintenance payments, and the recipient is not taxed on it.

Of course, the Court must take this fact into account when deciding how much maintenance to award.

I know. I paid SM for 28 years.

LMM

me449
Elite Member

04 Jun 16 #479297 by me449

Reply from me449

Probably worth bearing in mind that spousal maintenance would potentially affect any benefits (not CM) you get although I''m not sure if this is applicable to the situation you are in.

notmrsanymore
Posted by
Junior Member

04 Jun 16 #479298 by notmrsanymore

Reply from notmrsanymore

I am worried about this - I only get tax credits would that be affected? Also is there any difference whether I get a global maintenance order or separate CM and SM?

Bubblegum11
Moderator

04 Jun 16 #479299 by Bubblegum11

Reply from Bubblegum11

Tax credits are not affected by spousal maintenace, but, when you move over to universal credit, it will be. I think child maintenance is ignored for both UC & TC.

Moderators: wikivorce team, rubytuesday, dukey, hadenoughnow, Tets, Shezi, Linda Sheridan, Forseti, Mitchum, WhiteRose, Lostboy67, WYSPECIAL, Bubblegum11

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