The biggest advantage of getting (civilly) partnered, however, is probably the inheritance tax benefits.
Everyone can pass on £325,000 free of IHT, which is charged at 40pc on assets above that threshold (there is an extra £125,000 allowance where a family home is involved). Surviving civil partners will inherit their partner’s allowance on their death, however, meaning a couple can pass on £900,000 in 2018-19 free of tax. By April 2020, this will rise to £1m.
Couples living together with no legally binding and recognised relationship status forgo this benefit. They also miss out on automatically inheriting their partner’s assets, including their pension.
Penny Mordaunt, minister for women and equalities, said:“Today is a step forward for equality for this Government wants to see more people legally joined, in the way they want, with the person they love, and we will work towards making sure these partnerships are available to everyone across the UK.”