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Maintenance Payment

Money paid by a divorced person to his/her partner to assist with living expenses. From the taxation point of view, maintenance may be enforceable following a court order, or voluntary. Where maintenance is enforceable the recipient will, under certain circumstances, be liable for tax, depending on when the order was made and the amount paid.

The person making the payments can claim limited tax relief. For voluntary payments, the recipient is not liable for tax and the person making the payments cannot claim tax relief.

Submitted by: admin
Added: Wed May 31 2006

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