Are you in a same-sex relationship?

The Civil Partnership Act - legislation which, for the first time, recognises the legal and financial rights of same-sex couples - has now become law.  There are many benefits for qualifying couples but it’s not right for everyone.

Civil Partnerships

The Civil Partnership Act - What is it?

The Civil Partnership Act 2004 - legislation which recognises the legal rights of same-sex couples - became law on 5th December 2005. Now, same-sex couples prepared to undertake the necessary steps to form a Civil Partnership will have a new legal status, that of “Civil Partner”, and will then qualify for many of the same legal and financial rights that married, heterosexual couples have always enjoyed.

Civil Partnership - who is eligible?

U.K. Civil Partnerships are available to couples who are: both of the same sex; not already in a Civil Partnership or Marriage; 16 years of age or older (with parental consent if under 18); not closely related, (e.g. parent, sibling, niece, uncle, etc.,).

What was wrong with the old system?

Quite simply, couples in same-sex relationships had no automatic rights under Law, however long they had been together! This often led to considerable emotional upset and financial hardship. For example, upon one partner’s death, the survivor could be legally excluded from the funeral by the deceased’s family or, having no status in tax law, could lose their jointly owned home because of Inheritance Tax.

What has changed?

Practically everything! If you enter into a Civil Partnership, you will have the same rights - and the same legal and financial responsibilities - as a married couple in areas like tax, social security, inheritance and pensions. If you would like to know more, please click on the Civil Partnership link on the right and we will be happy to send you a detailed explanation; or contact us for an individual discussion.

Wills and Tax planning

Civil Partners can now take advantage of the same tax breaks that traditional married couples have always enjoyed. For example, they can leave each other as much as they like without suffering a damaging Inheritance Tax bill at first death. They can also make new Wills incorporating Nil Rate Band trusts and IOUs so that the eventual tax bill at second death is much lower. At the rates due to come into force in 2007, this would save up to £120,000.

This is a totally new tax-planning opportunity for same-sex couples, but it is essential to seek specialist advice to make sure that it will work for you.

We have an in depth understanding of the new act and its implications.

Contact us now to discuss the best course of action in your individual circumstances.