Summer 2004 Newsletter Content Still Good Company You Cannot Be Serious! Van For The Money Double Joint Account What's Final? From Cradle... ...To Grave Home Office Property Perils One Day At A Time Two Into One Will Go Home-A-Loan Breaking The Code Europe Expands Personal Services Civil Partnerships His And Hers Contract Time E-Filing Shop Yourself

Civil Partnerships The Civil Partnerships Bill introduces the idea of registered same-sex relationships, which will have a similar legal status to a traditional marriage. This is a controversial measure, and many people have strong views about it, but we will only consider the tax consequences here. The Inland Revenue have issued a press release explaining that same-sex couples who register their relationship under the new rules will be treated in the same way as a married couple for tax purposes. The press release goes into some detail about the effect on tax credit claims, but does not spell out the big issues - husband and wife are exempt from capital gains tax and inheritance tax on transfers between them in most cases, and it appears that this will be extended to registered same-sex couples. The tax effect is not automatic for a same-sex couple living together, just as the rules for husband and wife only apply after a marriage. It's not clear yet how many people will go through the registration process, but it appears that there will be a tax advantage in doing so.