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PBR: Equity release planners welcome IHT changes

Equity release planners have welcomed the Chancellor’s proposed changes to the inheritance tax threshold.

Mortgage Portfolio Services mortgage and equity release planner Simon Chalk says: “At present, many couple have to establish the ownership of their principal residence on a tenants-in-common basis in conjunction with a Will Trust in order to avoid losing one nil rate band on first death, thus their beneficiaries paying an unnecessary £120,000 tax bill.”

He says the problem for equity release planners was that providers are reluctant to accept a property subject to a trust, particularly if equity release is sought after the first death.

The new proposals remove the need to use the main residence for IHT mitigation making it easier to effect equity release.

But he says: “Net estates over £600,000 may still find it worthwhile considering such planning. In spite of this improvement, equity release providers need to overcome their reluctance and start accepting properties under trust as they are losing out on a sizeable part of the market and frustrating our efforts to help clients meet their needs.”


Virgin puts forward offer to take control of Northern Rock

Virgin Group has moved its plans further forward to take control of Northern Rock.Tycoon Sir Richard Branson has put together a consortium of US and Asian investors, including insurance giant AIG, to take a majority stake in the troubled bank.Virgin’s proposed partners include US insurance giant AIG, buyout business WL Ross and Hong-Kong based investment […]

Royal Liver to add virtual underwriter Q&A tool to website

Progress by Royal Liver is adding a virtual underwriter tool to its website which aims to efficiently answer any protection queries advisers might have.The firm is also revamping its website, to go live on October 22nd, but the virtual underwriter element should be added to the current site on Monday.The tool will allow advisers to […]

£2M profit boost for MI

Mortgage Intelligence has reported £2m profit and £12bn in mortgage lending through over 8,000 members in the year to July 31.Managing director Sally Laker says that with much hype about the future of networks and speculation about those that may or may not fall by the wayside, it is good to be able to deliver […]

Tax allowances and exemptions

Helen O’Hagan, Technical Manager at Prudential, looks into the planning strategies that can deliver considerable tax savings for your clients. Inheritance tax (IHT) Consider Margaret, featured on our Planning Matters family hub, who is a sprightly eighty year old with four children and several grandchildren. She’s recently been widowed and IHT planning is high on […]


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