New legislation has been published  to allow people entering into civil partnerships to avail of the same tax treatment as other married couples. The Civil Partnership bill was published on 13 June 2011 and is to give legal effect to the objectives announced by the previous government.

Included in the legislation are certain changes to allow for long-term cohabiting couples, though it stops far short of granting such couples the same tax rights as those in civil partnerships or marriage. The changes mainly involve protection in the case of the death of a partner and in the case of a financially dependent co-habiting partner when a long-term relationship breaks down.

Below is a summary of the main effects from a tax perspective:

Income tax:

• Civil partners will now be able to allocate tax credits and bands to the same degree as other married couples
• There will be no change for co-habiting couples – both will continue to be assessed singly.

Transfers of assets:

• As with married couples, civil partners will be able to transfer assets to each other without triggering charges to capital taxes, including on the death of either spouse.
• Co-habiting couples will continue to be subject to normal rules, except on death where the surviving member of the relationship was financially dependent on the deceased.

Separation and divorce

• Civil partners will be able to avail of the same tax treatment as that afforded to married couples
• Financially dependent partners in a co-habiting relationship will be able to claim a form of compensation in the event the relationship breaks down.

Revenue has published detailed FAQs on the two main topics (click to download):

• Taxation-civil-partnerships FAQs
• Cohabitants FAQs