Do you need to check their will to avoid missing out on £70,000 of new inheritance tax breaks. The introduction of the new residence nil rate band, or the family home allowance, means many wills are out of date – and people will not benefit from the new tax break. The residence nil rate band allows couples to pass on a £1m family home free of inheritance tax. From April 6, each individual can claim an additional allowance of £100,000 to offset the sale of a family home on death, on top of their existing £325,000 inheritance tax exemption. This increases by £25,000 each year until it reaches £175,000 in April 2020. For a couple this means a £1m family home can be left tax free. However, the rules around how the new tax break will work are so complicated experts warn many individuals could be caught out.
The proportion of first-time buyers relying on inherited wealth or loans from the ‘bank of mum and dad’ has reached a historic high and the trend looks set to continue, according to research. The report warns that the increasing trend will have "damaging consequences" for social mobility as young people on lower incomes are finding it almost impossible to get a foot on the housing ladder. For 25 to 29-year-olds, home ownership has fallen by more than half in the last 25 years from 63% in 1990 to 31% today.
People aged 30 and under face working until the age of 70 before they can draw a state pension under projections drawn up by a Government review. A separate recommendations published at the same time by former CBI boss John Cridland could also mean people currently in their 40s see the age they start receiving the pay-out pushed back a year.
The number of residential property transactions decreased by 0.7% between January 2017 and February 2017, according to the latest data from HMRC. February's seasonally adjusted figure is 1.9% lower compared with the same month last year. The number of non-adjusted residential transactions was about 5.0% higher compared with January 2017, but 5.7% lower than in February 2016. We should be careful in assuming this blip in property transactions growth is the trend for the rest of the year. Consumers are less confident in bricks and mortar than they were in recent months, as shown by today’s figures, but it’s too early to say whether this will be a long-term trend.
George Osborne’s raid on landlords and second-home owners has raked in an extra £1.4bn this financial year alone, twice as much as the former chancellor of the exchequer expected when he raised stamp duty on property investors. Sustained purchasing numbers in the property market, combined with rising prices, mean analysts at the Office for Budget Responsibility expected the tax to raise £700m in the tax year 2016-17.