Source · Select Committees · Women and Equalities Committee
Recommendation 6
6
Rejected
People need certainty following the loss of a partner.
Recommendation
People need certainty following the loss of a partner. We support the Law Commission’s 2011 recommendations concerning intestacy and family provision claims for cohabitants. We are concerned that many cohabitants rely on trustee’ discretion to access their deceased partner’s pension, often after being asked to supply disproportionate amounts of evidence compared to married or civil partnered claimants. Like spouses and civil partners, cohabitants should be able to inherit the family home without fear they will have to sell it to pay an inheritance tax bill. The Government should immediately: a) implement the Law Commission’s 2011 recommendations concerning intestacy and family provision claims for cohabiting partners; b) publish clear guidelines on how pension schemes should treat surviving cohabiting partners, including what those partners are entitled to, and what evidence they will need to access survivor’s pensions; and c) review the inheritance tax regime so it is the same for cohabiting partners as it currently is for married couples and civil partners. (Paragraph 73) 28 The rights of cohabiting partners
Government Response Summary
HM Treasury rejects the recommendation to implement the Law Commission’s 2011 recommendations concerning intestacy and family provision claims for cohabiting partners; publish clear guidelines on how pension schemes should treat surviving cohabiting partners; and review the inheritance tax regime so it is the same for cohabiting partners as it currently is for married couples and civil partners because the government has no plans at present to extend the longstanding treatment of spouses and civil partners to cohabiting partners as the inheritance tax treatment of married couples and civil partners reflects their unique legal relationship.
Government Response
Rejected
HM Government
Rejected
HM Treasury rejects this recom=mendation. The Government has no plans at present to extend the longstanding treatment of spouses and civil partners to cohabiting partners. While the Government is understanding of the issue, the inheritance tax treatment of married couples and civil partners reflects their unique legal relationship. However, the Government will keep inheritance tax, including the issue of cohabitation under review.