Content
U-Turns Galore
Premises, Promises
Filing Bonus
RIP: 0% Rate
His and Hers
Party Spirit
State Of The Union
VAT's The Point?
Going Dutch
Away Win For Revenue
WIP-Round
The Best Land Plans
Tax Free Gizmos
Where Theres A Will
Do You Work Here?
Out Of The Shadows
Sacrifice Works
Home Sweet Office
Sauce For The Goose
Blissful Ignorance
PC Or Not PC?
Lost On Penalties
Worth The Paper
Carry The Can
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The papers were full of the first civil partnerships in December, including Elton John and David Furnish. The legal recognition of same-sex relationships was briefly news and will probably become part of ordinary life. Registered civil partners will be treated in exactly the same way as married couples over a wide range of legal areas, including tax. Tax isn't the reason to get married or to become civil partners, but it's worth understanding the tax consequences of either. Some tax rules are favourable to married couples. There is no capital gains tax or inheritance tax on transfers between the partners, which is potentially a huge saving, particularly where one person dies. It's always important for couples to review their estate planning to take advantage of this. Less well known are the disadvantages of married status. For example, an unmarried couple can own two houses and treat each as a CGT-exempt main residence, but as soon as they marry, they only have one exemption between them. The same will apply to civil partners. If husband and wife each own a company, the limit for the lower rates of corporation tax - £300,000 - is divided between them. Even if the companies have nothing else to do with each other, they will tend to pay more tax because of this rule. Then there are the "settlement" rules that the case of Arctic Systems are all about - that's in a different article in this newsletter. It's also important to remember that the "married" tax rules will only apply to registered civil partners. People who live together without any legally recognised relationship will continue to be treated as separate people. If you want to discuss the tax consequences of any sort of family relationship, we will be happy to help. |
© Bayar Hughes & Co., 2010.