Dáil Éireann Debate, Thursday - 23 May 2013
42. Deputy Andrew Doyle asked the Minister for Finance the taxation benefits that are available to couples after entering into same-sex civil partnerships; if these tax benefits can be availed of by opposite-sex civil partnerships; and if he will make a statement on the matter. [24936/13]
View answerA couple that enters into a civil partnership under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 is entitled to the same treatment for income tax, capital gains tax, capital acquisitions tax and stamp duty as a married couple. The relevant taxation provisions were introduced in the Finance (No. 3) Act 2011. They allow civil partners to claim the benefits of joint assessment including the tax bands and tax credits that are available to married couples. The tax legislation also provides for relief for maintenance payments made on the breakdown of a civil partnership the same as is provided for separated or divorced spouses. There is also capital gains tax relief for property transfers made on foot of such an arrangement. The Act also provided for similar capital taxes and stamp duty reliefs on the transfer of property by gift or inheritance. For example, transfers of property between civil partners now qualify for the exemption from stamp duty that is available to married couples.
Further information can be obtained from the Frequently Asked Questions on the Revenue website at http://www.revenue.ie/en/personal/faqs/taxation-civil-partnerships.pdf and from leaflet IT2 - Taxation of Married Persons and Civil Partners - at http://www.revenue.ie/en/tax/it/leaflets/it2.html.
Under the provisions of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, a civil partner is defined as either of two persons of the same sex who are parties to a civil partnership registration or to a class of legal partnership otherwise recognised under the Acts of a civil partnership.
Where a couple, whether same sex or opposite sex, is cohabiting other than as married or in a civil partnership, they are treated as separate and unconnected individuals for the purpose of income tax. Each partner is a separate entity for tax purposes. Such cohabiting couples cannot file joint assessment tax returns or share their tax credits and tax bands in the same manner as married couples or civil partners.
However, there is specific provision made for granting tax relief for maintenance payments if the cohabiting arrangement ceases, in circumstances where one cohabitant was previously in receipt of financial support from the other partner, similar to that provided between separated spouses. Section 1031Q of the Taxes Consolidation Act 1997 provides for tax relief in respect of legally enforceable maintenance arrangements made under section 75 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 with the person making the maintenance payment getting relief for the payment and the beneficiary being taxed on same. There is also Capital Gains tax relief for property transfers made on foot of such an arrangement.
