Essentially inheritance tax is to be scrapped on homes worth up to £1m the inheritance tax policy will be funded by limiting the amount of tax relief on pension contributions given to those earning more than £150,000 a year. In a joint article, Mr Cameron and Mr Osborne write: "As we promised in our manifesto, we'll take the family home out of inheritance tax for all but the richest."
They add: "It can only be right that when you've worked hard to own your own home, it will go to your family and not the taxman." Andy Silvester, campaigns director at the Tax Payer Alliance (TPA) said: "Inheritance tax is one of those things, that even for people who frankly would not be hit by it at the moment, is a really unpopular tax. "People find it fundamentally unfair that income you've already been taxed on in order to buy your house is taxed on when you die.
From April 2017 parents will each be offered a further £175,000 "family home allowance" to enable them to pass property on to children tax-free after their death. This will be added to the existing £325,000 inheritance tax threshold, bringing the total transferable tax-free allowance from both parents in a married couple or civil partnership to £1m.
Issued by: Enable Independent Financial Life Planners 25c North Street, Bishops Stortford, Herts CM23 2LD Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
No comments:
Post a Comment