Posted on 18.3.15
On Tuesday 17th March, plans were leaked allowing properties up to £1 million to be passed on to the home-owners children without paying any inheritance tax. According to Treasury papers, The plans were drawn up by George Osborne, allowing wealthy home owners to pass on their property, worth up to £1 million, onto their children.
The chancellor, ahead of the autumn statement advanced the new measure, however the Liberal Democrats blocked it. It’s thought that the Conservatives will revive it within the next two weeks as one of the main election crowd pleaser’s, but will not feature as a measure in the budget statement.
Once parents liable for the bracket pass away, their children will gain far more of the proceeds to spend on the following property. For those selling their parents home worth up to £2 million, the children will retain an extra £140,000.
According to The Guardian, a government source said: “This looks like a policy to buy more Tory votes to help the wealthy and would be highly regressive in its impact on society.”
By 2019/2020, it’s estimated that just over 20,000 fewer estates yearly would have any inheritance tax liability under the plan. However, concerns rise for unaffordable housing for the rest of the country.
If you would like to discuss anything to do with your property, whether you are looking to buy, sell, re-mortgage or transfer equity, please contact Gorvins approachable Residential Conveyancing team on 0161 930 5117 or complete our online enquiry form. We will be happy to discuss any aspect of your property transaction with you.