Stamp Duty and Stamp Duty Land Tax: Civil Partnerships

The Civil Partnership Act 2004 comes into force on 5 December 2005. Civil partnership is an equality measure for same-sex couples, who are unable to marry. It provides for the legal recognition of same-sex partners who wish to enter into interdependent relationships that are intended to be permanent, and provides a framework whereby they acknowledge their mutual responsibilities and manage their financial arrangements.

The Tax and Civil Partnership Regulations 2005 comes into force on the same date. They bring about tax parity between civil partners as defined in the Civil Partnership Act 2004 and married couples (and in each case those treated as such).

This note is about some minor changes to stamp duty and SDLT law. References to marriage and marriage-related terms in our legislation will now include a parallel reference to civil partnership or civil partners. In particular:

• Section 83 FA 1985 and Schedule 3 FA 2003: the stamp duty and SDLT reliefs for transfers in connection with divorce etc. are amended to include transfers between civil partners in connection with the dissolution or annulment of a civil partnership or the legal separation of the civil partners.
• Section 84 FA 1985: the stamp duty relief for appropriations by personal representatives in satisfaction of rights of a surviving spouse in intestacy (and for certain rights in Scottish law) is amended to include analogous rights of civil partners.
• The provisions of the Stamp Duty (Exempt Instruments) Regulations 1987 (S.I. 1987/516) apply, via a new paragraph GG in the Schedule, to transfers to a party to a civil partnership (or to his nominee, or to trustees) on the formation of the civil partnership. Consequential amendments are made to paragraphs D and H of the Schedule (which concern transfers within sections 83 and 84 FA 1985).
  
  For further information, please see the Statutory Instruments and Explanatory Memoranda. SDLT forms and guidance material will be amended to include these changes as soon as possible.

Please note: Civil partners will be 'connected persons' within the meaning of S. 839 ICTA 1988, so that, e.g. purchases by civil partners from the same vendor can be linked transactions (unlike purchases by unmarried opposite-sex partners or unregistered same-sex partners).