With the news of a General Election round the corner, there is a very real possibility of a Labour Government coming into effect before the year is out.
Speaking recently, Labours John McDonnell announced that the government could raise up to £1 billion by halving the maximum tax-free allowance for couples leaving family homes to their children from £850,000 to £425,000.
If the party is successful in government, it will also consider introducing a lifetime gifts tax, which would cut the current minimum tax threshold on inheritance from £475,000 to £125,000.
Due to a steady increase in housing prices across the UK over the past 10 years this could potentially affect many home owners and their inheritance portfolio.
The suggestion has been criticised by the Conservatives, with party vice-chairman Marcus Jones describing the idea as a “siege on homeowners” claiming it would prevent parents passing on homes to their children.
To find out how to plan for any potential changes to Inheritance Tax, speak to Navigate Wealth today. Contact us by calling 0345 340 9690, or send an email to enquiries@navigatewealthgroup.co.uk
