Revenue Note for Guidance
This section provides that civil partners are taxed as single persons throughout the year of assessment in which they entered into a civil partnership. However, a measure of relief is given by way of repayment after the end of that year where the total tax which would have been paid and payable by the civil partners under this arrangement exceeds the total tax that would have been payable had they been civil partners throughout the year. Such a repayment is divided between the civil partners and is governed by general rules relating to tax credits, deductions, reliefs and repayments.
(1) “income tax month” means a calendar month.
“year of registration” in relation to 2 individuals who are civil partners of each other means–
(3) Where the aggregate of —
exceeds the tax which would have been payable by the nominated civil partner on both their incomes (under joint assessment) if they had been civil partners throughout the year of registration, then the relief provided is calculated by way of the formula —
“A” is the amount of the excess.
“B” is the number of months (including part of a month) from the date of registration of their civil partnership to the end of the year of assessment.
(2) Civil partners may not opt for joint assessment under section 1031D for the year of registration but may do so for any subsequent year of assessment.
(5) If a couple in a registered civil partnership wish to obtain a repayment of tax under this section they must make a joint claim to the inspector after the end of the year of registration.
(4) Where any repayment of tax is due, it is divided between the civil partners according to the tax paid and payable by them.
(6) The general provisions relating to allowances, deductions and reliefs (section 459 and paragraph 8 of Schedule 28) and the rate of tax at which repayments are to be made (section 460) apply in the same manner to repayments under this section.
Relevant Date: Finance Act 2021