Tax and Maintenance Payments

Posted on 10th March 2025 by Streets - Income Tax

Maintenance Payments Relief reduces Income Tax for those making court-ordered payments to an ex-spouse or civil partner. To qualify, one party must have been born before 6 April 1935. The relief is 10% of payments, up to £428 per year.

To qualify for this relief, all of the following conditions must apply:

Either you or your ex-spouse/civil partner must have been born before 6 April 1935.
You must be paying maintenance under a court order after the relationship has ended.
The payments must be for the maintenance of your ex-spouse or former civil partner, provided they are not remarried or in a new civil partnership, or for children under 21.
This relief offers a 10% reduction in the maintenance you pay, up to a maximum of £428 per year (10% of £4,280).

To claim, you must contact HMRC. The process involves providing necessary documentation, such as proof of the court order and payment records.

This benefit is designed to reduce the overall tax burden, helping someone manage their financial responsibilities after a separation.

However, it's important to note that this tax relief is limited due to the age condition — it only applies if either party was born before 6 April 1935, which significantly restricts its usage.

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