It is only just over three years ago that the UK recognised
same-sex civil partnerships and treated them the same as
married couples for tax and most other purposes. However,
civil partnerships are not recognised in the same way throughout
the European Union and this can lead to unexpected tax liabilities.
For example, some countries charge an equivalent of inheritance
tax that may be lower, or nil, on property that passes to
a deceased’s widow or widower, but UK civil partners
might not qualify for this treatment. There might also be
income tax reliefs for married couples that are not extended
to UK civil partners.
Some EU countries, for example France, have their own form
of civil partnership but do not recognise a UK arrangement.
Other countries, such as Italy, do not recognise same-sex
relationships at all.
Civil partners coming to the UK are unlikely to have similar
difficulties. Registered overseas relationships are recognised
in the UK if the parties had capacity to enter into the relationship
and meet all the necessary requirements to ensure its validity.
There is no single solution for UK civil partners living
abroad, but there may be steps you can take to deal with
particular issues, such as choosing the most appropriate
way to own property.
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