Learn about the tax benefits now available to all couples - not just married ones. Following a Supreme Court ruling, all couples in England and Wales will now be able to choose a civil partnership rather than get married.
Julie Kingham, one of Aspen Waite's tax specialists, looks at some of the benefits of this ruling and how it could affect your personal tax planning strategy:
At long last, my partner and I can benefit from a Civil Ceremony. We have been together for nearly 8 years, and no, I am not interested in getting married. I’ve been married twice, have no religious inclinations and just do not want to get married.
However, the benefits of being in a Civil Partnership – which gives us both the same rights as a married couple are not to be dismissed.
Tax Advantages of a Civil Partnership
The tax advantages of being married / in a Civil Partnership are:
- Being able to transfer 10% of our personal allowance between us;
- Transferring assets between us without any capital gains tax, or inheritance tax consequences,
- If one of us passes before we reach state retirement age the survivor can apply for a £2,500 Bereavement Support Allowance with a further 18 monthly instalments of £100 (more if we had children). And these are tax-free.
- And if we don’t get around to making a Will – let’s face it 42% of the adult population don’t have a Will - and one of us dies intestate the survivor will inherit under the rules of intestacy (this would not apply if we continue to live together).
- And finally, being in a Civil Partnership also means that we have greater flexibility when preparing our Wills to minimise our Inheritance Tax liabilities.
Now, where did I put the venue brochure from Batch Country House...?
What are civil partnerships?
Created in 2004 to give same-sex couples similar legal and financial protection as a married couple. The Marriage Act of 2013 was introduced, legalising same-sex marriage, giving those couples the choice. However, this choice was not available to mixed-sex couples until recently.
How Aspen Waite can help
If you are considering a civil partnership, speak to us about your personal tax situation and learn what the implications could be. Protect your family, estate and take advantage of the benefits available to you.
To find out more, get in touch with Julie on 01278 445151 or send us a message.