Partners & Family - Civil Partnerships

The Civil Partnership Act 2004 changed civil and military law. Significantly, gay and lesbian couples entering a Civil Partnership were given the same tax rights as straight married couples.

The key financial issues that affect us in the military are:

• Civil partners are treated in the same way as straight married couples for tax purposes.
• Employment and pension benefits to your partner on death
• Ability to insure your partner against death
• Recognition for civil partners under intestacy rules (if you die without leaving a will)
• Recognition for civil partners for immigration and nationality purposes

If your partnership should not prosper and you separate, on dissolution, partners may have:

• a right to reasonable maintenance,
• entitlement to a share of property,
• lump sum orders,
• property adjustment orders,
• pension sharing orders.

So consider your actions!

A detailed briefing note was issued on 16 Mar 05 by HM Treasury in connection with the 2005 Budget. The key briefing on implications of Civil Partnership are reproduced on the Treasury Briefing page in this section.

Armed Forces Pension Scheme and Civil Partnership

All details of the AFPS and your rights are included on a separate Armed Forces Pensions page.

House ownership and Capital Gains Tax

The Finance Acts which support Civil Partnernship were put in place in 2005. One of the limited negative impacts is that, once a partnership is registered a same-sex couple is liable as a married couple for Capital Gains Tax. Whereas previously you and your partner could each own their own home and be treated as separate entities for the purpose of Capital Gains Tax you wil, under Civil Partnership be allowed one main residence between you. Whilst unpartnered in the eyes of the law you don’t have to pay CGT on both main residences. In partnership your second home will be liable to CGT.

If CGT relief on your second house means more to you than the symbolic commitment of Partnership and its other tax benefits then don't get partnered.

If you are getting 'hitched' then dispose of your surplus property before you talk to the tax man about changing your codes.