Reports in the national press today claim the Conservative Party has been drawing up plans to scrap inheritance tax on properties worth up to £1 million.
The news means the vast majority of middle-income, middle-class families and home owners in the UK would be able to pass on property to their children without a hefty 40% going to the government in tax. Under the new plans, homeowners and their kids would also reduce the inheritance tax bill on any property worth up to £2m by £140,000.
The news came from leaked documents written with the guidance of Treasury financial secretary, David Gauke, and the chancellor. The zero-tax rate on homes up to a million pounds would include any family home or residence transferred to a child of a parent who has died and includes step children and adopted children. It is expected to be announced in the chancellor's Budget this week.
Under current tax laws, a 40% tax is applied to any estate (including property and other savings or assets) that has a value of £325,000 or more. It is expected that the zero-rate tax on other types of assets less than £325,000 will remain the same.
Do you have children? Or do you have elderly parents who are thinking of protecting their financial future? Outlet has a team of qualified industry professionals who can help with all your financial needs including estate planning, home insurance, life cover or income protection and mortgages. Call us today on 020 3411 5953 or email email@example.com for more information.
Want to register to receive more interesting property insight? Right this way...