Key takeaways

  • Married couples and civil partners are taxed separately and each files their own return; there are no joint returns.
  • Income from jointly owned property and joint accounts is split 50:50 by default, unless a Form 17 declaration reflects unequal ownership.
  • Transfers of assets between spouses are free of Capital Gains Tax, and separating couples have until the end of the third tax year after separation, or longer under a divorce order, to make them.
  • Separation ends Marriage Allowance and can change who pays the High Income Child Benefit Charge.
  • Child maintenance payments are not taxable for the recipient and give no tax relief to the payer.

The UK taxes individuals, not couples. Getting married or entering a civil partnership does not create a joint tax return, and separating does not end anyone’s tax obligations. But both events change how some income is split, which allowances you can share and how Capital Gains Tax works between you.

Each partner files their own return

Each spouse or civil partner has their own Personal Allowance, tax bands, savings and dividend allowances and CGT annual exempt amount, and files their own Self Assessment return if they need to. One partner cannot report the other’s income, although an accountant can act for both.

Jointly owned income

The 50:50 rule

Where a married couple or civil partners own income-producing assets jointly, such as a rental property, shares or a joint savings account, HMRC treats the income as shared equally for Income Tax, whatever their actual shares. Each reports half on their return.

Form 17: splitting by actual ownership

If you own a property in unequal shares as tenants in common, for example 75:25, you can make a declaration on Form 17 so that the income is taxed according to those actual shares. Conditions:

  • you must actually own the property in those shares (a declaration of trust or the deeds must show it)
  • both partners sign the form, and HMRC must receive it within 60 days of the date of the declaration
  • it applies from the date of the declaration, not retrospectively

Couples often use this to move rental income to the partner who pays a lower rate of tax. The 50:50 rule does not apply to income from a partnership, or to shares in a close company in some cases.

Allowances couples can share

  • Marriage Allowance: a partner earning under £12,570 can transfer £1,260 of their allowance to a basic rate taxpayer partner, saving up to £252 a year. See Marriage Allowance.
  • Blind Person’s Allowance: any unused part can be transferred to a spouse or civil partner.
  • Married Couple’s Allowance: for couples where one was born before 6 April 1935.

The High Income Child Benefit Charge

The charge applies to the partner with the higher adjusted net income if either partner receives Child Benefit and that income is over £60,000. “Partner” includes unmarried couples living together. After a separation, the charge depends on your new household; if you live alone and receive Child Benefit, only your own income counts. See the High Income Child Benefit Charge.

When you separate

Tell HMRC about changes

  • cancel Marriage Allowance; it normally stops at the end of the tax year, but can end from the start of the tax year in which the relationship ended
  • check who claims Child Benefit, as the claimant receives the National Insurance credits for a child under 12
  • jointly owned income stays split according to the 50:50 rule until you separate; after that, each of you reports your actual share

Capital Gains Tax on transfers between you

Transfers between spouses and civil partners who are living together are on a no gain, no loss basis: no CGT arises and the recipient takes over the original cost. For separations from 6 April 2023:

  • the no gain, no loss treatment continues until the end of the third tax year after the tax year in which you stopped living together, and
  • it continues without time limit for assets transferred under a formal divorce or separation agreement or court order

This gives separating couples time to divide assets without a CGT bill.

The family home

  • A spouse who moves out can still claim private residence relief when transferring their share of the home to the other spouse as part of a divorce agreement, if the other spouse has continued to live there.
  • If a spouse keeps an interest in the former home and sells it later, they can elect for private residence relief for the period the other spouse lived there, if they have not elected another home as their main residence.

See private residence relief.

Maintenance and pension sharing

  • Child maintenance and spousal maintenance payments are not taxable income for the person receiving them, and the payer gets no tax relief, except a small relief for couples where one partner was born before 6 April 1935.
  • Pension sharing orders transfer part of a pension to the other spouse. The transfer itself is not taxable, and the recipient is taxed when they draw the pension.

Frequently asked questions

Do married couples file a joint tax return in the UK?

No. Each spouse or civil partner is taxed separately and files their own return if needed.

How is rental income from a jointly owned property taxed for a married couple?

Equally by default. If you own the property in unequal shares, you can make a Form 17 declaration so each of you is taxed on your actual share.

Is there Capital Gains Tax when divorcing couples transfer assets?

Not if the transfer is made by the end of the third tax year after separation, or at any time under a formal divorce agreement or court order, for separations from 6 April 2023.

Is child maintenance taxable?

No. Child maintenance is not taxable for the recipient and gives no tax relief to the payer.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance in October 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.