In a move that will be closely watched by Asian based investors of UK property the UK Chancellor George Osborne is planning to use his first Conservative budget to confirm the end of inheritance tax on family homes worth up to £1m.
He is expected to announce this coming Wednesday that the threshold at which the tax is levied will rise from £650,000 after April 2017. Over the weekend PM David Cameron and Mr Osborne said those who worked for their homes should be able to pass them on to family members.
The move will allow a couple to pass a house worth up to £1m to their children or grandchildren. The chancellor will create a £175,000, tax-free allowance per person for their main property on top of their existing £325,000 allowance that can be applied to all assets.The proposed action will match a key pledge made in the Conservatives' election manifesto.
Speaking from London yesterday Jordan Williams from family office advisory Artorius Wealth said,"This is a welcome boost for many property owners and will provide further confidence to many Asian investors looking to purchase property in the UK. Many Asian buy-to-let investors have been nervous over the tax implications of buying and owning a property through various structures but for a number of investors who are taking finance to fund their acquisitions, these proposals should alleviate the need for complex arrangements and rather, provide benefits for holding property in their own name."
