Taxes Consolidation Act 1997 section 1031M

Civil partners

Section 1031M deals with the assessment and treatment of capital gains and losses of civil partners who are living together.

• Where civil partners are living together, the nominated civil partner is assessed on their combined chargeable gains, but the additional tax charged must not exceed what would have been charged on the other partner under separate assessment
• Either civil partner may apply for separate assessment of chargeable gains by notifying Revenue on or before 1 April in the year following the tax year, and this election continues until withdrawn
• Allowable losses of one civil partner that cannot be used against that partner's own gains may be set against the other partner's chargeable gains, unless either partner opts out of this treatment
• A disposal of an asset (other than trading stock) between civil partners is treated as made for a consideration giving rise to no gain and no loss, and the receiving partner inherits the original acquisition date and cost