Opposite-sex couples will be able to register civil partnerships in England and Wales from 31 December 2019 after secondary legislation was approved in the House of Lords.
Civil Partnership (Opposite-sex Couples) Regulations 2019 were passed by Lords on 5 November meaning millions of opposite-sex couples who live together, and more that live apart, will be able to enjoy the financial benefits of marriage without getting traditionally wed.
The new regulations will commence on 2 December, which would mean the first opposite-sex civil partnership to take place on New Year’s Eve, allowing the usual 28-day notice period.
The news follows a supreme court ruling in June last year, fought by equality campaigners Rebecca Steinfeld and Charles Keidan, that found restrictions on same-sex civil partnerships were in breach of human rights.
Lindsey Canning, head of Family Law at Wake Smith Solicitors in Sheffield, said: “Currently only same-sex couples can currently form a civil partnership, but the Lords have confirmed the change to grant the right to a civil partnership to male-female couples.
“Cohabiting couples are the fastest growing household group in Britain. Long-term cohabitation offers insufficient formal rights, however, despite common false beliefs in the idea of a common law partner.
“As the Government wants to encourage more people to formalise their relationships, civil partnerships offer the same privileges and responsibilities as marriage, opening up significant financial benefits through a variety of tax breaks and allowances.
“Benefits will include the marriage allowance being extended to civil partnerships, tax bill advantages and relief, savings and inheritance tax benefits.”
What is a civil partnership?
A civil partnership is a legal relationship which can be registered by two people who aren't related to each other. If you are in a same-sex, and now an opposite-sex relationship, registering a civil partnership will give your relationship legal recognition. This will give you added legal rights, as well as responsibilities.
Once you have registered a civil partnership, it can only be ended if one of you dies, or by applying to court to bring the partnership legally to an end.
You cannot apply to bring a civil partnership to an end until it has lasted for at least one year.
The biggest advantage of getting a civil partnership is the inheritance tax benefits.
Everyone can pass on £325,000 free of IHT, which is charged at 40 per cent on assets above that threshold (there is an extra £150,000 allowance where a family home is involved for 2019/20 rising to £175,000 in 2020/21). Surviving civil partners will inherit their partner’s allowance on their death, however, meaning a couple can pass on £950,000 in 2019/20 free of tax. By April 2020, this will rise to £1m.
Lindsey added: “Couples living together with no legally binding and recognised relationship status currently forgo this benefit. They also miss out on automatically inheriting their partner’s assets, including their pension.
“This step change decision confirmed by the Lords is a real move forward for equality as it makes sure that these partnerships are available to everyone across the UK from the end of the year.”
The regulations will commence on 2 December, which would allow the first opposite-sex civil partnership to take place on New Years Eve, given the usual 28-day notice period.
Wake Smith’s Family team can advise on pre-nuptial agreements, but also pre-civil partnership agreements if parties want to record their agreement to protect/ring fence their assets in the event of the relationship coming to an end. It also works closely with Wake Smith’s Private Client team on estate planning and inheritance matters.
For legal advice on pre-nuptial agreements, pre-civil partnership agreements, cohabitation and marriage contact Lindsey Canning on 0114 266 6660 or at [email protected]
