Comparison · Tax & Estate Planning · 2026/27
Civil Partnership vs Marriage: Tax and Inheritance 2026/27
Now that civil partnerships are open to any couple, regardless of sex, the tax and inheritance treatment is almost identical to marriage under UK law. Here is what actually differs - and, more importantly, what does not.
TL;DR - 30-Second Summary
- - Marriage Allowance: identical rules for both - up to £252 a year in 2026/27
- - Inheritance Tax spouse/civil partner exemption: unlimited transfers, identical for both
- - Capital Gains Tax: no-gain-no-loss transfers apply to both equally
- - Any gap? Almost always down to a specific legacy pension scheme rule, not general tax law
Side by Side
| Feature | Marriage | Civil Partnership |
|---|---|---|
| Marriage Allowance (2026/27) | £1,260 transfer, up to £252 saving | Identical |
| IHT spouse/civil partner exemption | Unlimited (UK-domiciled) | Identical |
| Transferable nil-rate band | Yes | Identical |
| CGT no-gain-no-loss transfers | Yes | Identical |
| Legacy pension survivor rules | Usually the default assumption in older schemes | Check scheme rules - some older schemes lagged behind |
The One Area Worth Checking: Pension Scheme Rules
General tax law treats civil partners and spouses identically, but some older occupational pension schemes were written before civil partnership legislation existed, or before it was extended to opposite-sex couples, and their trust deeds may not have been fully updated. This can occasionally affect survivor pension benefits in a specific legacy scheme, even though HMRC tax treatment itself does not distinguish between the two statuses.
If you or your partner have a defined benefit pension from an older scheme, it is worth asking the scheme administrator directly to confirm how survivor benefits apply to civil partners under that specific scheme's rules, rather than assuming general tax equality automatically extends to every pension provision.
Which Should You Choose?
For tax and inheritance planning purposes alone, there is no financial reason to prefer one over the other - both give you the Marriage Allowance, the unlimited Inheritance Tax exemption between partners, and identical Capital Gains Tax treatment. The decision usually comes down to personal preference around ceremony and terminology, with a single practical check worth making: confirm how any specific older pension scheme you or your partner belong to treats civil partners before finalising your decision.