Burden v UK [2008]

1. Facts:

• The applicants, two unmarried sisters aged 88 and 81, had lived together in a jointly owned house for several years.

• Neither sister had ever married, and they were concerned about the inheritance tax liability that would arise if one of them died, potentially forcing the surviving sister to sell their home to cover the tax.

• They argued that they were unfairly excluded from inheritance tax exemptions available to civil partners under the Civil Partnership Act 2004, which would have allowed them to avoid this financial burden.

2. Outcome:

• The European Court of Human Rights (ECtHR) rejected the sisters’ claim, ruling that their situation could not be compared to that of a couple in a civil partnership.

• The Court held that the relationship between siblings is qualitatively different from that between couples, whether married or in a civil partnership. As such, the inheritance tax exemptions for civil partners could not be extended to siblings.

• The Court found no violation of Article 14 (prohibition of discrimination) taken in conjunction with Article 1 of Protocol No. 1 (protection of property) of the European Convention on Human Rights (ECHR), upholding the distinction made by UK law.

3. Impact and Analysis:

• Differentiation Between Relationships: The ruling highlights the ECtHR’s stance that relationships between siblings cannot be equated with those between married couples or civil partners. The Court emphasised that the nature of the legal and emotional bonds in a civil partnership is different from that of a sibling relationship, justifying different legal treatment.

• Inheritance Tax Law: The case underscores the specific intent behind inheritance tax exemptions for civil partners, which are designed to recognise and support the unique economic and social unit formed by couples. The Court’s decision reflects the view that extending such exemptions to siblings would undermine the rationale for these laws.

• Discrimination and Legal Precedent: The decision in Burden v UK set a precedent in affirming that the discrimination claims under Article 14 require a comparison between groups that are in relevantly similar situations. The ruling clarified that not all close familial relationships warrant the same legal protections as those granted to married couples or civil partners.

• Policy Implications: While the ruling was legally sound, it raised questions about the fairness of inheritance tax laws as they apply to siblings and other cohabiting family members. The case has since been cited in discussions on potential reforms to inheritance tax rules to accommodate the needs of different family structures, though no significant changes have been made as a direct result of this case.