Are unmarried couples connected with each other for tax purposes?

[ROBERT WILLIAMS]

I have clients who are a couple living together not married or related but have a child and llive at the same address.The definition of “connected persons” in s 839 of ICTA 1988 seems clear in that I do not think they are, but I cannot imagine the Revenue have let this pass them by in view of the amount of people living together? Is there any case law on this?

[Nick Beecham]

In the area of SDLT, I think HMRC gain more than they lose from this as many unmarried relationships do not last and then there is no relief under Para 3 Sch 3 FA 2003.

Best wishes
Nick

[Patrick]

Section 839 doesn’t connect people who are living together unless any of the other connecting factors mentioned in the section apply. I am not aware that HMRC feel strongly about this. Nick B has pointed out that such persons do not get the exemption for separating/divorcing couples and any amendment to s839 to catch unmarried couples would probably have to copy the social security provisions dealing with unmarried couples and would be both complex and subjective.

[Author]

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