CIVIL PARTNERSHIPS
As of today (5 December 2005) homosexual couples and other same sex couples and friends who are not related can now enter into a civil partnership. The registration process brings many benefits. In particular there are significant tax advantages.
Julia Smart, a partner and head of our Family Department says under the Civil Partnership Act 2004 same-sex couples can obtain legal recognition of their relationship by forming a civil partnership. They may do so by registering as civil partners of each other provided:
- they are of the same sex;
- they are not already in a civil partnership or lawfully married;
- they are not within the prohibited degrees of relationship;
- they are both aged sixteen or over (and, if either of them is under 18 the registration is to take place in England and Wales or Northern Ireland, the consent of the appropriate people or bodies has been obtained).
The Act also sets out the legal consequences of forming a civil partnership, including the rights and responsibilities of civil partners. Some local town halls have already had open evenings to give couples an overview of what is involved. Just as with marriage no investigation is entered into as to whether the couple are sexually involved, in love or in any kind of a romantic relationship so friends who live together and wish in particular to pass assets to each other free of inheritance tax could also benefit from the new rules as well as homosexual couples. However siblings cannot use the new provisions. Do not enter such a relationship lightly as to undo it requires a process akin to divorce. Unmarried couples of a different sex cannot form civil partnerships and remain outside the tax benefits offered from such arrangements and from those of marriage.
We can advise you on the advantages and legal consequences of forming a civil partnership and in particular the tax implications.
Call Julia Smart on 0117 9290451 or email jsmart@metcalfes.co.uk for further information.
This press release summarises the law on issues which we believe may be of interest to your business. It is not a comprehensive review of the subjects and accordingly is published without responsibility for loss occasioned to any person(s) acting or refraining from action as a result of information published