News & Insights
Budget response
from Anne Elliott, Chief Executive at Latimer Hinks
Anne Elliott, Chief Executive at Latimer Hinks Solicitors, said: “The Budget statement contained many significant measures relating to the housing market. The announcement likely to have the biggest impact is the additional £175,000 inheritance tax allowance for those who leave their homes to their children or grandchildren from 2017. The relief is tapered away for those with estates of more than £2m.
“This is a move that will benefit families, enabling property to be passed more easily down the generations. It will ensure that greater numbers of hard-working families can keep the investment they have made in their properties and safeguard the interest of future generations. Wealthier families, with property values at over £1m will still be subject to IHT.
She added: “The extension of the income tax-free allowance to £7,500 for resident landlords who rent a room in their home is an additional key measure to be welcomed. But, buy-to-let landlords are set to be hit by new rules which will allow then only to offset interest against costs at the basic rate of tax, not the higher rate.
“All in all, its a significant Budget for families and for the housing market. Anything which helps families pass down their hard-earned assets to their loved ones has to be welcomed.
