Divorce and Family Law

Some Implications of the Civil Partnership Act 2004

The Civil Partnership Act 2004 came into force on 5 December 2005. It changes the Law by allowing the civil registration of a relationship between two people of the same sex. The main provisions of the Act are described in a separate article.

The Act amends legislative provisions relating to Wills, estate administration and family provision. In consequence, the Act has far-reaching implications and may influence matters not immediately apparent. It is therefore important to consider the potential impact of entering into a Civil Partnership.

Some of the important changes are:

Wills
The registration of a Civil Partnership will automatically revoke existing wills in the same way that marriage does, unless the Will names the other intended Civil Partner, shows that he/she intended to enter into a Civil Partnership with that individual and shows that he/she did not intend the Will to be revoked by a Civil Partnership.

Upon the death of a civil partner, the surviving civil partner will be in the same position as a surviving spouse. They will have priority over the Public Trustee in being granted Letters of Administration i.e. administration of the Estate.

Intestacy
Amendments provide that where a civil partner dies intestate (leaving no valid will) the surviving civil partner will be allowed to inherit the Estate of their deceased civil partner under the intestacy rules in the same way as surviving spouses.

Succession to Property
Upon the death of a civil partner, the surviving civil partner may be able to succeed in the same way as a spouse to a tenancy of the partnership home.

Inheritance Tax
Inheritance Tax amendments are not detailed in the Civil Partnership Act 2004. However, provision is made for amendments to be enacted through the Finance Act 2005.

To provide parity with a spouse, lifetime gifts and gifts on death between civil partners will be exempt from Inheritance Tax.

Capital Gains Tax
As with an inter spouse transfer there will be no charge to Capital Gains Tax between civil partners. However, civil partners would be prudent to wait until they have officially registered their Civil Partnership before transferring assets between themselves.

Please note however, as with spouses, civil partners are only exempt from Capital Gains Tax on one family home between them. Prior to registering as civil partners, individuals will be entitled to an exemption in respect of one property each. Consequently, if two properties are owned it will be important to consider selling one property before entering into a civil partnership in order to take advantage of the exemption.

Stamp Duty Land Tax
Transfers of land between spouses on divorce or by gift are exempt. The same will be true upon dissolution of a Civil Partnership.

Fatal Accidents Claims
The Civil Partnership Act 2004 amends the Fatal Accidents Act 1976 and brings Civil Partners into the same category as spouses. Thus a surviving partner is now able to issue a claim in respect of their partner's fatal accident.

Please note that the changes detailed above are merely a brief outline and should not be relied upon as a definitive guide. This area of law is complex and each individual case will need to be considered carefully on its own facts.

To discuss your own situation or to make an appointment, contact one of the lawyers in the Matrimonial department, Lisa Bolgar Smith or Eleanor Hoare on 020 7242 7000 or use the Contact Request Form.

© Ambrose Appelbe 2004-2008
This web site contains general information only and does not constitute legal advice. You should take suitable advice as to your specific circumstances. Ambrose Appelbe accepts no responsibility and disclaims all liability in relation to such information.