QUESTION
Are civil partners (same-sex couples who form a civil partnership) treated in the same way as married couples for tax purposes?
ANSWER
Generally speaking yes. When civil partnerships were introduced in December 2005 the Inland Revenue changed the taxation rules to bring them into line with married couples. However, the changes are not all beneficial for civil partners as, for example, couples who decide to enter into a civil partnership will now only be able to have one principal private residence (which means the increase in value of your main home is exempt from Capital Gains Tax) whereas previously they could have had one each. Also, a civil partner will become an 'associate' of a company director, which may have an effect on his or her tax position as regards benefits in kind. In addition, anti-avoidance legislation for all taxes is being extended to include civil partners.
Another important thing to remember is that if you enter into a civil partnership, you will need to execute a new will as your old one becomes void once the partnership is formed.
If you would like individual advice on the implications of a civil partnership please contact Derek walker in our Family department on 0808 2317043 or by email at dww@pgslaw.co.uk.
Patterson, Glenton & Stracey have 125 years experience of providing legal services to the people of South Tyneside. Advice in this column is for information only and should not be used as the basis of legal action.. Please refer to their web site at www.pgslaw.co.uk for further information.
