AS MANY as 22,000 Britons are expected to take advantage of the new Civil Partnership Act (CPA), with the first ceremonies taking place on December 21 — 15 days after the Act first comes into effect.

The Act has created a new relationship recognised under law, which will have a huge effect on the way same-sex couples pay inheritance tax, receive pensions and are paid compensation.

Under the CPA, homosexual couples will have the same property rights as married couples. This means that they will generally not have to pay inheritance tax on assets owned by their deceased partner, or capital gains tax on items transfered between them.

However, like married couples where one or both parties owned a property before marriage, same-sex couples will have to write a new will when they enter a partnership.Under the new law, if a civil partner dies without a will, their spouse can receive up to £200,000 from the estate and half of any assets over that amount. If the deceased had children, then the initial amount is reduced to £125,000.

When it comes to rented accommodation, partners will be able to have their spouse’s tenancy transferred to their name if they wish. If one partner dies, they may be able to take over the tenancy, if it was soley in the deceased’s name.

To take part in a civil partnership, both partners will have to be aged 16 or over and of the same sex. Once a couple has given notice of intention to register a civil partnership to both of their local register offices, there is a 15-day waiting period before the ceremony can take place. The whole process will cost a minimum of £70.

Modern Life 2005, the UK’s largest gay wedding lifestyle exhibition, is on in London next month. It will provide legal and financial advice on the CPA from experts in the area.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive