The short version: A civil partnership is a legal union between two people. It gives you almost the same rights and responsibilities as marriage, including the same tax treatment.
How is it different from marriage?
The main differences are procedural. You form a civil partnership by signing a document rather than exchanging vows. It ends through dissolution rather than divorce. And adultery isn’t grounds for ending one (though unreasonable behaviour is).
Originally civil partnerships were only for same sex couples, but now anyone can enter one.
What are the tax benefits?
Civil partners get the same tax treatment as married couples. Assets left to your partner when you die aren’t subject to Inheritance Tax. You can transfer assets between you without triggering Capital Gains Tax. And you might be able to transfer part of your Personal Allowance if one of you earns below the threshold.
Recently entered a civil partnership and want to check you’re making the most of the tax benefits? Let us know and we’ll take a look.
