The Tax and Civil Partnership Regulations 2005

• Citation: S.I. 2005/3229
• Sections: 200

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Tax and Civil Partnership Regulations 2005 and, subject to paragraphs (2) to (7), shall come into force on 5th December 2005.

(2) Regulation 4(3)(a)(ii) (paragraph (b) of the definition of “dependent relative” in section 11(6) of the Inheritance Tax Act 1984) shall have effect in relation to dispositions made on or after 5th December 2005.

(3) In regulation 8, paragraphs (5), (6) and (7) (subsections (4), (4A) and (5) of section 22 of the Inheritance Tax Act 1984) shall have effect in relation to dispositions made on or after 5th December 2005.

(4) Regulations 51 to 55, 56(6) and 104 (sections 257A, 257AB, 257BA, 257BB, 257C and 265(6) of the Income and Corporation Taxes Act 1988 and section 25 of the Finance Act 1990) shall have effect for the year 2005-06 and subsequent years.

(5) Regulation 67 (section 347B of the Income and Corporation Taxes Act 1988) shall have effect in relation to any payment falling due on or after 5th December 2005.

(6) In regulation 114, paragraphs (5) and (6) (subsections (5) and (5A) of section 169F of the Taxation of Chargeable Gains Act 1992) shall have effect in relation to disposals made on or after 5th December 2005.

(7) Regulations 176 (section 189 of the Finance Act 2004), 177 (section 192 of the Finance Act 2004), 178 (section 203 of the Finance Act 2004), 180 (paragraph 15 of Schedule 28 to Finance Act 2004) and 181 (paragraph 10 of Schedule 35 to Finance Act 2004) shall have effect on and after 6th April 2006.

Section 2 Finance Act 1984

In Schedule 14 to the Finance Act 1984 (beneficiary’s liability for tax on gains of non-resident trustees), in paragraph 1(1), in the definition of “close relative”, after “spouse” insert “or civil partner”.

Section 3 Inheritance Tax Act 1984

The Inheritance Tax Act 1984 is amended as follows.

Section 4 Inheritance Tax Act 1984

(1) Section 11 (dispositions for maintenance of family) is amended as follows.

(2) In subsection (1), after “marriage” insert “or civil partnership”.

(3) In subsection (6) —

(a) in the definition of “dependent relative” —

(i) in paragraph (a), after “spouse” insert “or civil partner”, and

(ii) for paragraph (b) substitute —

(b) his mother or father or his spouse’s or civil partner’s mother or father;

(b) at the appropriate place insert —

“civil partnership”, in relation to a disposition made on the occasion of the dissolution or annulment of a civil partnership, and in relation to a disposition varying a disposition so made, includes a former civil partnership;

Section 5 Inheritance Tax Act 1984

In section 12 (dispositions allowable for income tax or conferring retirement benefits), in subsection (2)(b)(ii), after “widow” insert “or surviving civil partner”.

Section 6 Inheritance Tax Act 1984

In section 17 (changes in distribution of deceased’s estate, etc ) —

(a) in paragraph (c), after “spouse” insert “or civil partner”, and

(b) in paragraph (d), after “legitim” insert “or rights under section 131 of the Civil Partnership Act 2004”.

Section 7 Inheritance Tax Act 1984

(1) Section 18 (transfers between spouses) is amended as follows.

(2) In subsection (1), after “spouse” insert “or civil partner”.

(3) In subsection (2), after “spouse” insert “or civil partner”.

(4) In subsection (3), in the words following paragraph (b), after “spouse”, in both places, insert “or civil partner”.

(5) In the heading, after “spouses” insert “or civil partners”.

Section 8 Inheritance Tax Act 1984

(1) Section 22 (gifts in consideration of marriage) is amended as follows.

(2) In subsection (1), after “marriage”, in each place, insert “or civil partnership”.

(3) In subsection (2), after “marriage”, in each place, insert “or civil partnership”.

(4) In subsection (3), after “marriage”, in both places, insert “or civil partnership”.

(5) In subsection (4) —

(a) in the opening words, after “marriage” insert “or civil partnership”,

(b) for paragraph (a) substitute —

(a) the parties to the marriage or civil partnership, any child of the family of the parties to the marriage or civil partnership, or a spouse or civil partner of any such child;

(c) in paragraph (b), for “issue” substitute “child”,

(d) for paragraph (c) substitute —

(c) a subsequent spouse or civil partner of a party to the marriage or civil partnership, any child of the family of the parties to any such subsequent marriage or civil partnership, or a spouse or civil partner of any such child;

(e) in paragraph (d), for “issue” substitute “child”.

(6) After subsection (4) insert —

(4A) In subsection (4) “child of the family”, in relation to parties to a marriage or civil partnership, means a child of one or both of them.

(7) Omit subsection (5).

(8) In the heading, after “marriage” insert “or civil partnership”.

Section 9 Inheritance Tax Act 1984

In section 23 (gifts to charities), in subsection (4)(a), after “spouse” insert “or civil partner”.

Section 10 Inheritance Tax Act 1984

In section 29A(6) (abatement of exemption where claim settled out of beneficiary’s own resources), in paragraph (a) of the definition of “the exempt beneficiary”, after “spouse” insert “or civil partner”.

Section 11 Inheritance Tax Act 1984

In section 30 (conditionally exempt transfers), in subsection (3)(a), after “spouse”, in both places, insert “or civil partner”.

Section 12 Inheritance Tax Act 1984

In section 48 (excluded property), in subsection (1)(b), after “spouse” insert “or civil partner”.

Section 13 Inheritance Tax Act 1984

(1) Section 53 (exceptions from charge on termination of interest in possession) is amended as follows.

(2) In subsection (4) —

(a) in paragraph (a), after “spouse” insert “or civil partner”, and

(b) in paragraph (b), after “widower” insert “or surviving civil partner”.

(3) In subsection (5)(a) —

(a) after “spouse” insert “or civil partner”, and

(b) after “widower” insert “or surviving civil partner”.

(4) In subsection (7), after “spouse” insert “or civil partner”.

Section 14 Inheritance Tax Act 1984

In section 54 (exceptions from charge on death), in subsection (2) —

(a) in paragraph (a), after “spouse” insert “or civil partner”, and

(b) in paragraph (b), after “widower” insert “or surviving civil partner”.

Section 15 Inheritance Tax Act 1984

In section 57 (application of certain exemptions), in subsection (2)(a), after “marriage”, in both places, insert “or civil partnership”.

Section 16 Inheritance Tax Act 1984

In section 71 (accumulation and maintenance trusts), in subsection (2)(b)(ii), after “widowers” insert “or surviving civil partners”.

Section 17 Inheritance Tax Act 1984

(1) Section 80 (initial interest of settlor or spouse) is amended as follows.

(2) In subsection (1), after “spouse” insert “or civil partner”.

(3) In subsection (2) —

(a) after “spouse” insert “or civil partner”, and

(b) after “widower” insert “or surviving civil partner”.

(4) In the heading, after “spouse” insert “or civil partner”.

Section 18 Inheritance Tax Act 1984

In section 86 (trusts for benefit of employees), in subsection (1)(b), after “marriage” insert “to or civil partnership with,”.

Section 19 Inheritance Tax Act 1984

In section 108 (business property: successions), in paragraph (b), after “spouse”, in both places, insert “or civil partner”.

Section 20 Inheritance Tax Act 1984

In section 109 (business property: successive transfers), in subsection (1)(b), after “spouse” insert “or civil partner”.

Section 21 Inheritance Tax Act 1984

In section 112 (business property: exclusion of value of excepted assets), in subsection (3), in the words following paragraph (b), after “spouse” insert “or civil partner”.

Section 22 Inheritance Tax Act 1984

In section 120 (agricultural property: successions), in subsections (1)(b) and (2), after “spouse”, in each place, insert “or civil partner”.

Section 23 Inheritance Tax Act 1984

In section 121 (agricultural property: successive transfers), in subsection (1)(b), after “spouse” insert “or civil partner”.

Section 24 Inheritance Tax Act 1984

In section 126 (charge to tax on disposal of trees or underwood), in subsection (2), after “spouse” insert “or civil partner”.

Section 25 Inheritance Tax Act 1984

In section 131 (transfers within 7 years before death: the relief), in subsection (1), after “spouse”, in both places, insert “or civil partner”.

Section 26 Inheritance Tax Act 1984

In section 133 (shares - capital receipts), in subsections (1) and (2), after “spouse” insert “or civil partner”.

Section 27 Inheritance Tax Act 1984

In section 134 (payments of calls), after “spouse” insert “or civil partner”.

Section 28 Inheritance Tax Act 1984

In section 135 (reorganisation of share capital, etc), in subsection (4), after “spouse” insert “or civil partner”.

Section 29 Inheritance Tax Act 1984

In section 136 (transactions of close companies), in subsection (3), after “spouse”, in both places, insert “or civil partner”.

Section 30 Inheritance Tax Act 1984

In section 137 (interests in land), in the opening words of subsection (3), after “spouse” insert “or civil partner”.

Section 31 Inheritance Tax Act 1984

(1) Section 145 (redemption of surviving spouse’s life interest) is amended as follows.

(2) After “spouse”, in both places, insert “or civil partner”.

(3) In the heading, after “spouse's” insert “or civil partner's”.

Section 32 Inheritance Tax Act 1984

(1) Section 147 (Scotland: legitim) is amended as follows.

(2) In subsection (1) —

(a) after “spouse”, in both places, insert “or civil partner”,

(b) after “claim legitim” insert “or rights under section 131 of the Civil Partnership Act 2004 (“section 131 rights”)”, and

(c) after “in respect of legitim” insert “or to section 131 rights”.

(3) In subsection (2) —

(a) after “spouse”, in both places, insert “or civil partner”, and

(b) after “legitim”, in both places, insert “or section 131 rights”.

(4) In subsection (4) —

(a) after “spouse” insert “or civil partner”,

(b) after “claim legitim”, in both places, insert “or section 131 rights”, and

(c) after “claim has been made)” insert “or on the basis that all section 131 rights had been claimed in full at the testator’s death (excluding any rights renounced before any claim has been made)”.

(5) In subsection (6), after “legitim” insert “or section 131 rights”.

(6) In subsection (7), after “legitim” insert “or section 131 rights”.

(7) In the heading, after “legitim” insert “ etc. ”.

Section 33 Inheritance Tax Act 1984

In section 152 (cash options), in the words following paragraph (b), after “widower” insert “, surviving civil partner”.

Section 34 Inheritance Tax Act 1984

In section 161 (valuation: related property), in subsection (2), after “spouse”, in both places, insert “or civil partner”.

Section 35 Inheritance Tax Act 1984

In section 191 (sale of land from deceased’s estate: the relief), in subsection (3)(a)(ii), after “spouse” insert “or civil partner”.

Section 36 Inheritance Tax Act 1984

In section 203 (liability of spouse ) —

(a) in subsections (1), (2) and (4), after “spouse”, in each place, insert “or civil partner”, and

(b) in the heading, after “spouse” insert “or civil partner”.

Section 37 Inheritance Tax Act 1984

In section 209 (succession in Scotland), in subsections (2) and (3), after “legitim” insert “or rights under section 131 of the Civil Partnership Act 2004”.

Section 38 Inheritance Tax Act 1984

In section 272 (general interpretation), insert at the appropriate place —

“step-child”, in relation to a civil partner, shall be construed in accordance with section 246 of the Civil Partnership Act 2004;

Section 39 Inheritance Tax Act 1984

(1) Part 2 of Schedule 4 (maintenance funds for historic buildings, etc: property leaving the funds) is amended as follows.

(2) In paragraph 10(1) —

(a) in paragraph (a), after “spouse” insert “or civil partner”, and

(b) in paragraph (b), after “widower” insert “or surviving civil partner”.

(3) In paragraph 15A(4) , in the words substituted in paragraph 10(1) —

(a) in paragraph (b)(i), after “spouse” insert “or civil partner”,

(b) in paragraph (b)(ii), after “widower” insert “or surviving civil partner”, and

(c) in the words following paragraph (b), for “spouse, widow or widower” substitute “spouse or civil partner, or widow or widower or surviving civil partner,”.

Section 40 Finance Act 1985

The Finance Act 1985 is amended as follows.

Section 41 Finance Act 1985

(1) Section 83 (stamp duty: transfers in connection with divorce etc) is amended as follows.

(2) After subsection (1) insert —

(1A) Stamp duty under Part 1 of Schedule 13 to the Finance Act 1999 shall not be chargeable on an instrument by which property is conveyed or transferred from one party to a civil partnership to the other if the instrument —

(a) is executed in pursuance of an order of a court made on granting in respect of the parties an order or decree for the dissolution or annulment of the civil partnership or their judicial separation;

(b) is executed in pursuance of an order of a court which is made in connection with the dissolution or annulment of the civil partnership or the parties' judicial separation and which is made at any time after the granting of such an order or decree for dissolution, annulment or judicial separation as mentioned in paragraph (a);

(c) is executed in pursuance of an order of a court which is made at any time under any provision of Schedule 5 to the Civil Partnership Act 2004 that corresponds to section 22A, 23A or 24A of the Matrimonial Causes Act 1973; or

(d) is executed at any time in pursuance of an agreement of the parties made in contemplation of or otherwise in connection with the dissolution or annulment of the civil partnership, their judicial separation or the making of a separation order in respect of them.

(3) In subsection (2), after “(1)” insert “or (1A)”.

(4) In the heading, after “divorce” insert “, dissolution of civil partnership,”.

Section 42 Finance Act 1985

(1) Section 84 (stamp duty: death: varying dispositions, and appropriations) is amended as follows.

(2) In subsection (5), for “husband or wife” substitute “spouse or civil partner”.

(3) In subsection (6)(a), for “husband or wife” substitute “spouse or civil partner”.

(4) In subsection (7), for “relictae or of issue to legitim” substitute “relictae, of issue to legitim or rights under section 131 of the Civil Partnership Act 2004, or of a civil partner to rights under section 131 of that Act”.

Section 43 Finance Act 1986

The Finance Act 1986 is amended as follows.

Section 44 Finance Act 1986

(1) Section 102 (gifts with reservation) is amended as follows.

(2) In subsection (5) —

(a) in paragraph (a), after “spouses” insert “or civil partners”, and

(b) in paragraph (c), after “marriage” insert “or civil partnership”.

(3) In subsection (5A) , in paragraph (b), after “spouse” insert “or civil partner”.

Section 45 Finance Act 1986

In section 102A (gifts with reservation: interest in land), in the opening words of subsection (2), after “spouse” insert “or civil partner”.

Section 46 Finance Act 1986

In Schedule 20 (gifts with reservation), in paragraphs 6(1)(b)(iv) and 7(1) and (2), after “spouse”, in each place, insert “or civil partner”.

Section 47 Income and Corporation Taxes Act 1988

The Income and Corporation Taxes Act 1988 is amended as follows.

Section 48 Income and Corporation Taxes Act 1988

In section 13A (close investment-holding companies), in subsection (2)(b)(ii) —

(a) for “wife or husband”, in both places, substitute “spouse or civil partner”, and

(b) for “husband or wife” substitute “spouse or civil partner”.

Section 49 Income and Corporation Taxes Act 1988

In section 220 (purchase of own shares: conditions as to residence and period of ownership), in subsection (6), after “spouse”, in both places, insert “or civil partner”.

Section 50 Income and Corporation Taxes Act 1988

In section 227 (purchase of own shares: associated persons), in subsection (2), after “together” insert “, or civil partners of each other living together,”.