Tax advice for gay men

Gay Tax - The Issues

It is widely expected that all discrimination for same-sex couples, registered as Civil Partners under the Civil Partnership Act, will be eradicated with the introduction of the Civil Partnership Act on 5 December 2005. (This was originally discussed following an announcement from the Inland Revenue on 16th March 2005 - see our Press Release) .

	Same-sex couples who choose not to register as Civil Partners, are not recognised by Inheritance Tax Rules. Careful planning is still very necessary.
	For couples who are not registered Civil Partners, on death, the deceased's estate will have to pay full inheritance tax.
	Same-sex couples who choose not to register under the Civil Partnership Act are treated as individuals for capital gains tax purposes (this means, for example, that they can have, theoretically, 2 "permanent residences"

Tax Discrimination - The effect on you...

Civil Partners
If you or your partner dies, and you are registered Civil Partners, you do not have to pay a penny in inheritance tax.

If you gift your Civil Partner assets, such as company shares, the Capital Gain, will be deferred, (just the same as for a married couple).

Same-sex Couples NOT Registered As Civil Partners
If you are in a same-sex partnership and have not registered under the Civil Partnership Act and you leave all your assets to the survivor, tax at 40% will be charged on the value over £275,000. Married couples and registered Civil Partners would not have to pay a penny. 

If you do not make a will, your assets will not automatically go to your partner.

If you gift your partner assets, such as company shares, you may be liable to Capital Gains Tax - Civil Partners and married couples would be exempt.

Read a real case of this discrimination in action .

Tax Discrimination - What next

We can conduct a thorough review of your affairs and recommend ways of saving tax. Talk to us. 

We can put life assurance policies under trust, so that they do not form part of your estate and are not charged to Inheritance Tax on your death. Contact us .

Avoid this discrimination and minimise your tax bill.  

We also offer a full Tax Self Assessment service.