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<b>Tax News:</b> Same sex couples 'face £1,600 tax bill'. By Dan Martin

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27th Apr 2006
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Same sex couples may owe the HMRC up to £1,600 due to their lack of a knowledge over changes to tax credit rules introduced last December, accountants have warned.

The Chartered Institute of Taxation (CIOT) said although most people are aware that as of December last year same sex couples were allowed to register as civil partnerships, fewer people know that under the same regulations all same sex couples, whether civil partners or not, are now being treated as a unit for tax credits.

CIOT's Anne Redston said: "Previously same sex couples were treated as single people for the tax credit system. So two women who live together as a couple with one child each, would each have been treated as single parents.

"From 5 December onwards these couples' tax credits may go down ' perhaps by as much as £98 a week."

CIOT admitted HMRC did warn about the changes, but said the news was overlooked in the excitement over the new civil partnership rules.

As a result, it claimed, many affected people could face bills of up to £1,600 as by failing to tell HMRC by 5 March about their situation means backdating rules have come into play.

Redston added: "Same sex couples who are claiming tax credits should have told HMRC by now about their living arrangements. As each day passes their overpayment position could be getting worse. By now it could be as much as £1,600."

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By listerramjet
27th Apr 2006 13:06

I did wonder what this was all about?
"The Chartered Institute of Taxation (CIOT) said although most people are aware that as of December last year same sex couples were allowed to register as civil partnerships, fewer people know that under the same regulations all same sex couples, whether civil partners or not, are now being treated as a unit for tax credits."

ahh - all becomes clear - it was actually a tax raising device! Gordon (Bah Humbug) Brown strikes again.

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