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Close offers reversion plan to help reduce IHT

Close Brothers Investment is offering a whole-of-life homereversion policy in conjunction with Isle of Man Assurance which can help reduce inheritance tax.

The property wealth manager product enters into a home-reversion transaction once the consumer is aged 65 or over. The proceeds are invested in the life insurance home-reversion fund which acquires the property.

The number of units allocated to the client in the fund correspond to the value of the property, which must be worth over £200,000. The value of the property is therefore converted into a liquid asset.

Once the last surviving partner dies, any uncashed units will mature and be realised and any units which have been gifted to heirs will be free from IHT if the donor survives for seven years after making the gift.

Key Retirement Solutions managing director Colin Taylor says: “This looks like a very good proposition for people who want to raise money and make their affairs as tax-efficient as possible but it would only suit a minority of people looking at equity release.”

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Pension freedom: wish you were here?

Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.

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