Civil Partnerships

The Good News and The Tax Traps

Same sex couples have the chance from 5 December 2005 to register a civil partnership and the tax rules will treat them as though they were a married couple.

This is good news in relation to transfers of assets between civil partners and the spouse exemptions under IHT but there are also a range of tax traps.

Civil partners will become "connected persons" and "associates" for tax for the first time and so it will be important to consider all the tax consequences before rushing to register a civil partnership. Civil partners with more than one home will be restricted to only one principal private residence.

Civil partners should review wills and consider transferring assets beforehand.


Source of information:
KPMG
March-2005
Amended by MacDougall & Co

Information Leaflet