Financial Planner and wealth manager Quilter has said the decision by the Conservative Government to extend civil partnerships to heterosexual couples was “a no-brainer.”

The firm said Prime Minister Theresa May’s move to extend the legally-recognised unions was “an easy win during what is undeniably a tricky time for politics.”

In any case a Supreme Court ruling earlier this year put the wheels in motion, deeming that limiting civil partnerships to same-sex couples was incompatible with the European Convention on Human Rights.

Rachael Griffin, Financial Planning and tax expert at Quilter, said: “Recent figures from the ONS revealed the average age of those entering a civil partnership is rising, with more than half over 50.

“There could be myriad reasons for this, but it’s likely at least part of the rationale is the inheritance and tax rights that partnerships involve.

“Something that becomes of increasing importance as people get older and want to organise their estate.

“For instance, transfers between civil partners are not subject to inheritance tax, so if the first partner to die leaves their entire estate to the other there is a strong chance that none of their £325,000 nil-rate band has been used and could be transferred to their partner.

“Plus, the new residence nil-rate band, which will be worth £175,000 per person by April 2020, is also transferable between civil partner.

“These allowances combine to mean partners could leave up to £1m without triggering an IHT charge.”
 
“Importantly, this may mean that National Insurance bereavement benefits will be extended to these couples.

“Today, cohabiting couples miss out on thousands in bereavement help so this is will also be another reason for them to enter into a civil partnership.

“This will be a key point of detail to check for at the next Parliamentary opportunity to amend the law, which will be the Report Stage of Tim Loughton MP’s Civil Partnerships, Marriages & Deaths (Registration Etc.) Bill on Friday 26 October.”
 
She added: “A review into civil partnerships was set for 2020 so there remains a question mark over the future of the legislation as Theresa May could merely be putting a stopgap in place and it’s not inconceivable that a future Government could consider scrapping these partnerships altogether.”