Tax advice for gay men

Gay Tax - The Issues

Although the introduction of Civil Partnerships eradicated the differences between the treatment of civil partners and married couples, problems remain for couples who choose not to enter a Civil Partnership – just as they do for straight couples who choose not to marry.

	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, theoretically, have two homes qualifying for exemption from capital gains tax).

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, there will be no Capital Gains Tax (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 £325,000. Married couples and 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.

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.