#Budget2015: Prime property industry reactions to BtL, Non Dom and IHT changes

Size: px
Start display at page:

Download "#Budget2015: Prime property industry reactions to BtL, Non Dom and IHT changes"

Transcription

1 primeresi.com #Budget2015: Prime property industry reactions to BtL, Non Dom and IHT changes The three big policy announcements for the high-value property industry in today s Emergency Budget were a mixed bag. Abolishing permanent Non Dom status could hit demand from international buyers, but does seem to be a fairly fair thing to do. Upping the Inheritance Tax threshold to 1m was no surprise, but is still very welcome. Cutting the rate of tax relief for buy-to-let landlords is not, however, such a popular move Property Vision s Peter Mackie sums the whole thing up quite nicely, calling it politically charged but ultimately fair. There was, however, a notable absence of anything to push housebuilding or to otherwise tackle the short supply of housing stock; something of a missed opportunity. Here s what the prime property industry thinks of these three policies, as announced by George Osborne in the Emergency Budget 2015: NON DOMS The Chancellor has probably struck the right balance over Non Doms Ed Heaton, Heaton & Partners London is fast becoming a larger scale Monaco, a playground and an attractive destination for the super-rich. There are arguments for and against whether having such a huge international presence in the city really adds significantly to our economy, but on balance, I do think the super-rich really do add value to the UK as a whole. George Osborne needs to ensure that they make a significant enough contribution without taxing them out of the UK altogether. I think the Chancellor has probably struck the right balance today. Changes to Non Dom tax rules will not have profound effect Liam Bailey, Global Head of Research at Knight Frank On their own, the changes to the non-dom tax rules will not have a profound impact on the prime London market as demand is driven by a number of factors, and non-doms form only a part of demand. These reforms follow a series of changes in recent years that make it increasingly difficult to argue prime residential property is under-taxed. The relatively subdued nature of the prime London market since December s stamp duty changes highlights the risk of higher taxation on market demand and also Government revenues.

2 Stricter Non Dom rules will dampen demand from international buyers in central London Nicholas Leeming, Chairman of Jackson-Stops & Staff It is vital that the capital retains its attraction to non doms. The stricter rules being applied to non doms, while having some merit, will inevitably further dampen demand from international buyers in central London where the market for higher valued properties has already slowed sharply following last year s changes in stamp duty. This will affect the London economy, impacting restaurants, clubs and retail in prime central London. Will be viewed as a fair measure, no matter how painful Peter Mackie, Senior Partner at Property Vision The first in two decades, the Chancellor has delivered a politically charged but fair Tory budget. No matter how painful for those involved, the abolishment of permanent non-dom status for those living in the UK for more than 15 years will be viewed as a fair measure. If you choose to remain and contribute to the UK for that long, that should also include contributing to the UK tax system. More could be done to unlock second hand stock now Jeremy Blackburn, Head of Policy at RICS Measures to reassure downsizing baby boomers that they will not be penalised through their Inheritance Tax allowance are welcome, but more could be done to unlock second hand stock now. One such reform might be to incentivise over 60s to downsize now by doubling their Inheritance Tax allowance on sale. Likely to ensure the market remains price sensitive in the short term Lucian Cook, Head of UK Residential Research at Savills The removal of long term non-domicile status and the charging of inheritance tax on residential property held in an offshore structure reflects a further tightening of the tax net on high value properties. Though in itself it is unlikely to undermine the demand for high value homes in London, it is likely to ensure the market remains price sensitive in the short term. It does not necessarily follow that all those caught by this change will divest themselves of their UK property Mark Parkinson, Director, Middleton Advisors The main area likely to effect the prime property segment of the market that Middleton operate in is the abolition of the non-dom tax status. As ever the devil will be in the detail, but it appears to be aimed at second generation nondoms, and those who have been UK residents for more than 15 years. We believe that this will result in some increased supply of stock and vendors price expectations will become more realistic. It does not necessarily follow that all those caught by this change will divest themselves of their UK property. Neither does it necessarily follow that all those caught by this change will leave the UK. Although some tightening of the non-dom rule was expected, the extent of the changes will come as a shock to many and in the short term, probably, the prime property market. Changes will not really affect the super-wealthy Non Doms

3 Brendan Roberts, Aylesford International Before the election, I spoke to several non-dom clients about the threat of changes to the non-dom status. These were people who are older, long established wealthy families, who had been resident in London for many years; their answer was, where else do you go Geneva, Zurich, Monaco? None of the alternative tax friendly locations seemed to present an attractive alternative. Their viewed any changes in non-dom tax as the price of living in London, to them the best city in the world to live in. That said, these are people who can afford to live anywhere. As for the endless chatter about non-doms packing their bags pre-election and waiting to leave I think it s all nonsense. There are those for whom the non-dom status narrowly makes sense because their wealth is only just enough to justify using it, and any change will hurt them most, yet their wealth is not enough to justify relocation. The super wealthy will, I think, react just as our clients did pre-election, believing that there is no real viable alternative to maintain their chosen lifestyle. London still offers tax advantages to wealthy residents that qualify and London has all the advantages, so this change to taxing non-doms will not really affect the super-wealthy non-doms. Lip service to those baying for reform Hugh Wade-Jones, Managing Director of Enness Private Clients Those concerned for the stability of London s property market are probably going to be sleeping easy tonight. As it turns out George Osborne s Budget was a lot less harsh then could have been delivered and many of the changes won t take effect for at least a couple of years. The most pertinent property points that were addressed concerned reduced tax relief for buy to let landlords, a raise of inheritance tax threshold for family homes and a fractional change to the status of non-doms. Regarding the change to the non-dom status there seems to be a sense of making a change for change s sake. People s understanding of the rules surrounding non doms is limited, to say the least, so I suspect George Osborne is paying lip service to those baying for reform. It s unfortunate that some will be caught up in these politics of envy but hopefully an ever flourishing UK PLC will remain a suitably attractive home for them. Unwelcome but not unexpected Charles McDowell The Chancellor s latest announcement on changes to non dom status is unwelcome but not unexpected. We re unlikely to see a fire sale of prime central London property as those affected are likely to have considered and planned for this eventuality. The climate for financial companies is improving, with the reduction in the corporate tax rate, phasing out of the bank levy and the retention of temporary non dom status, which could be beneficial for the prime central London market under 10m which has been very slow over the past year. Inevitable and not entirely unreasonable Mark Pollack, Director at Aston Chase Although the changes to non-dom tax status will inevitably be disappointing to some, my view is that it was inevitable and not entirely unreasonable. Indeed, I suspect a lot of the people affected will have already been making plans in anticipation of this change, so I don t envisage any significant negative impact on the PCL market. INHERITANCE TAX

4 Fair and sensible James Bailey, Chief Executive of Henry & James The best news to come out of today s Budget is undoubtedly the ruling that people will be able to pass on estates worth up to 1m, free of inheritance tax. It s only fair and sensible that people who have worked hard to buy their home, should be able to pass it on to their family. Not that the tax burden has been totally cast off. The Chancellor made it clear that tax-free inheritance would not be available to people whose estates are worth more than 2m. A positive and refreshing move Ed Heaton, Heaton & Partners I think this is a positive and refreshing move by George Osborne. Inheritance tax has been stuck in a time warp for far too long whilst the elderly have increasingly been required to squander their savings and assets in their old age to pay for the failings of the state, which they so generously supported in the past. This goes some way to redressing the balance. The changes to mortgage tax relief for buy-to-let landlords will particularly hit those owning properties in prime central London, where the sums involved are very high and the yields extremely low. Notwithstanding this, if one accepts the Bank of England s arguments, then the proposed changes are probably a proportional response to the issue. It might even help release a little more prime stock in central London to the market in the next year or so, although this might be wishful thinking. More wealth will flow back down the generations rather than into the Treasury coffers Gráinne Gilmore, Head of UK Residential Research at Knight Frank Property trends over the last few decades have led to an amassing of housing wealth among older people. Increasing the Inheritance Tax (IHT) allowance will mean that more of this wealth flows back down the generations rather than into the Treasury coffers. It will give more people the chance to amass a deposit for a new home or make a step up the housing ladder. Making an allowance to protect downsizers is welcome. It means those living in large houses do not have to continue to do so in order to benefit from the IHT changes. This, in time, could help release more large homes back into the market. However, the tapering of the IHT bands upwards over the coming years mean that some may be tempted to sit tight in their home until they can downsize and retain the maximum housing IHT allowance, creating short-term stickiness in this market. The next step for policymakers will be to focus on is delivering housing suitable for downsizers properties in the right location and with the right specifications for older residents. A new downsizing market will emerge Nicholas Leeming, Chairman of Jackson-Stops & Staff The changes in inheritance tax are a step towards encouraging older home owners to downsize and so free up larger properties for families who need more space.

5 A welcome move Glynis Frew, Managing Director of Hunters Property Group We welcome the Chancellor s new inheritance tax thresholds, the last election taught us that home ownership is very important to the nation and when people have worked hard to own a residence and have already paid taxes they should be able to pass this onto their children tax-free. Relief for downsizers is sensible Adam Challis, Head of Residential Research at JLL The new higher rate of inheritance tax relief will provide retirees with greater choice on how to manage the transfer of wealth to younger generations. Sensibly, this relief will be upheld for downsizers, ensuring that it does not slow the release of larger family homes into the market. Pure politics Peter Mackie, Senior Partner at Property Vision Changes in inheritance tax will be viewed by many as pure politics with The Tories delivering their party manifesto promises. The law of unintended consequences could be a further squeeze on transactions as people opt to stay put rather than downsizing. This should mean easier access to the property market for many Nick Barnes, Head of Research at Chestertons Changes to inheritance tax are welcome, as for most people the family home is the main source of equity, and previously many average households, especially across London, have typically suffered a 40% reduction in their inheritance largely because of inflated residential property prices. This change should allow people to leave a more substantial legacy to their loved ones, which will mean easier access to the property market for many. Downsizing is critical to the efficient use of our housing stock Lucian Cook, Head of UK Residential Research at Savills The plan to increase the inheritance tax threshold will be of the greatest benefit to mature homeowners in London and its hinterland. While many older homeowners will welcome the changes to inheritance tax, the downside could be to encourage those in the high value areas to continue to hold onto their homes for longer, irrespective of the ability for downsizers to carry forward the increased inheritance tax allowance. Downsizing is critical to the efficient use of our housing stock and recycling housing wealth between generations, which is an important means of helping younger households get on or trade up the housing ladder. A sensible proposal Martin Bikhit, Managing Director of Kay & Co The Chancellor s move to raise the Inheritance tax allowance to 1m is a sensible proposal given the huge appreciation in property prices. The average property price in Prime Central London now stands at 2,080,742, so this is a far more sensible threshold.

6 A positive signpost for lasting home ownership Hugh Wade-Jones, Managing Director of Enness Private Clients The inheritance tax manifesto has been high up on the hit list of the Conservatives for years and is, undoubtedly, a positive signpost for lasting home ownership and a sense of continuity in the vein of one-nation Toryism. BUY-TO-LET Not as bad as it might have been Adrian Anderson, Director of Anderson Harris There had been growing fears among landlords that relief on mortgage interest payments for buy-to-let landlords would be completely abolished so while the changes will hit higher-rate taxpayers, it is not as bad as it might have been. It is only fair that there is a more level playing field between first-time buyers and landlords but if this tax break had been completely withdrawn, buy-to-let would have been far less attractive to investors. Thousands of landlords may well have struggled to keep up repayments on their mortgage or struggle to pay the tax, especially when interest rates rise. It is too simplistic to blame landlords snapping up rental properties for the property shortage. People have to live somewhere, and if they can t afford to buy, then they must rent. With many first-time buyers struggling to get on the property ladder and growing families unable to find the housing they need, housebuilding should be at the centre of the Government s strategy so we look forward to see what further planning reforms are proposed. Detailed plans are required as to how effective changes will be achieved. The UK remains a pretty reasonable tax jurisdiction in which to live Mark Harris, Chief Executive of SPF Private Clients Changes to mortgage interest relief for buy-to-let is inevitably going to slow down investment in property because this tax break has been one of its biggest attractions. It puts everyone on a level playing field basic and higher rate taxpayers, which is fair. It will inevitably slow down geared investment. If you are a genuine cash buyer, it won t make any difference to you and it probably won t make any difference to overseas investors in London but if you are looking to leverage with a mortgage, as most people do, it is a kick in the teeth for the higher-rate taxpayer. However, the arguments in favour of buy-to-let remain. If you are looking for good long-term growth then that will still be the case and you have a couple of years to get used to the changes, which makes it less painful. It will mean a shift for house builders who will become more reliant on owner-occupiers than investors so it will keep more of a lid on house prices. The UK remains a pretty reasonable tax jurisdiction in which to live. The reduction in tax breaks for landlords will reduce the amount of rental stick and push rents up Graham Davidson, Managing Director of Sequre Property Investment

7 Despite a phased approach, the reduction in tax breaks for landlords will make buy-to-let a much less attractive proposition, ultimately discouraging investment in the sector and reducing the amount of rental stock available, which will push rents up. As per Labour s proposed rental caps and controls, this is another example of politicians not understanding how the market operates, directly contradicting their apparent goals for an improved private rented sector. Landlords should be free to deduct legitimate costs, just like any other business does. A major blow Nicholas Leeming, Chairman of Jackson-Stops & Staff This a major blow to a sector that is heavily reliant on private investors and who provide a crucial supply of property to the private rental sector. A significant change that could put upward pressure on rents Gráinne Gilmore, Head of UK Residential Research at Knight Frank This is a significant change in tax status for those with a rental portfolio, although the measured rate of introduction between 2017 and 2020 will help landlords plan their approach. Those planning to purchase a buy-to-let property will have to factor these new rules into their calculations, and this could affect the offers they are willing to make. If the relatively low yield environment seen today, especially in the South of England, is still evident when these changes start to come into force, there could be upward pressure on rents. The need for rental accommodation is strong, and we expect this trend to continue, especially in city centre markets around the UK. We are not expecting an adverse effect Peter Mackie, Senior Partner at Property Vision Restrictions on buy-to-let tax relief could create an anomaly with landlords looking to recoup the cost by increasing rents but we will have to see whether the rental market is strong enough to support any further rental price rises. We are not expecting this to have an adverse effect on the buy-to-let market or the overall appeal of investing in the property market. Will inevitably lead to higher rents Glynis Frew, Managing Director of Hunters Property Group Despite a phased approach, we were disappointed to hear of the reduction in tax breaks for buy to let investors as this will discourage new landlords from entering the sector and will result in a lack of stock. This will inevitably lead to higher rents as at the end of the day landlords are business people and will need to compensate for this. May result in landlords simply putting rents up Matt Cobb, Director at Hatton Real Estate Landlords are going to take a hit over time with mortgage interest tax relief being phased out over four years however

8 this may result in landlords simply putting rents up. Overall, I don t believe that the budget will have any significant impact on house prices as demand remains strong and supply limited. Likely to weaken demand for new-builds Adam Challis, Head of Residential Research at JLL The loss of some Buy to Let interest relief will curb the expansion of investment in the sector. Although this will be seen as a boost for first-time buyers, it is only likely to weaken demand, particularly for new-build product. This investor activity is vital to underpin construction finance and will run counter to the need for higher rates of new supply. Likely to make the rental market less attractive to investors Martin Bikhit, Managing Director of Kay & Co The Chancellor s intention to restrict mortgage interest relief on residential property to the basic rate of income tax from April 2017, phased in over four years, is likely to make the rental market less attractive to buy-to-let investors in a market where an increasing number of people rent homes, which may push up rents for tenants as supply decreases. Investors may look elsewhere Shane Ballard, Lettings Director at Greene & Co The Government s announcement in today s budget that mortgage interest rate tax relief for buy-to-let homebuyers is to be restricted to the basic rate of income tax, could see some far reaching consequences once brought into effect. We may find that potential landlords look to alternative, more profitable investment options, and in particular this could affect individual retirement planning as expected profits from their buy-to-let portfolio fall. Areas which return high rental yields could become increasingly competitive while other areas where the rental yield is much lower may see a fall in demand from landlords as they no longer see it as a worthwhile investment. Will have a limited impact on the mortgage or property markets Hugh Wade-Jones, Managing Director of Enness Private Clients The changes to the tax reliefs that buy to let landlords enjoy will have a limited impact on the mortgage or property markets. These are proportionate softening reforms, unlikely to mature until 2017, which are not going to deter any buy to let landlords from bolstering their portfolios. It s important to remember that these tax reliefs are just one of the many costs surrounding owning and maintaining buy to let property that can be offset against tax. Those landlords heavily geared and relying on offsetting every last penny are a thing of a the pre-crash era. We hope the government is not too quick to dismiss the rental sector as a valuable tenure option Jennet Siebrits, Head of Residential Research at CBRE We believe that landlords across the country offer a service to tenants and should therefore be entitled to offset their interest payments as other service operators are able to do. While we are encouraged that the Chancellor ensured that landlords would be eligible to receive the basic rate tax relief, it may still lead to an upward pressure in rental prices for the general consumer. In a growing and much needed private rental sector, it is of significant importance that the Government further promotes institutional investment to support this increasing market. Any mention of build

9 to rent was sadly missing and we hope the Government with unwavering support for home ownerships isn t too quick to dismiss the rental sector as a valuable tenure option. We are disappointed that the Chancellor did not use this Budget as an opportunity to drive much needed housebuilding growth across the UK. We look forward to the Planning Reform Proposals which will be delivered on Friday and we hope will be designed to address this issue which is felt right across the country. Cartoon by George Leigh

Policy Response Buy to Let Tax Relief

Policy Response Buy to Let Tax Relief Savills World Research Policy Response Buy to Let Tax Relief Autumn 215 savills.co.uk/research In his May budget the Chancellor announced a limit on mortgage interest relief for buy to let investors in

More information

Making Homes Affordable Labour s Plan for Housing

Making Homes Affordable Labour s Plan for Housing Making Homes Affordable Labour s Plan for Housing Labour Making Homes Affordable.indd 1 10/02/2016 15:47 Every person should have access to good quality, secure, affordable housing, appropriate to their

More information

Richard Stone comments on today s Summer budget announcement

Richard Stone comments on today s Summer budget announcement press release 09 July 2015 Richard Stone comments on today s Summer budget announcement Richard Stone, Chief Executive of The Share Centre, one of the UK s leading independent retail stockbrokers, issued

More information

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and

More information

Policy Response The impact of new housing measures on development

Policy Response The impact of new housing measures on development Savills World Research UK Residential Policy Response The impact of new housing measures on development February 2016 SUMMARY Markets served by Help to Buy, Starter Homes and shared ownership are likely

More information

Post Budget At Retirement Market - Qualitative Consumer Research

Post Budget At Retirement Market - Qualitative Consumer Research Post Budget At Retirement Market - Qualitative Consumer Research Commissioned by syndicate members: This report is for media use only and may not be reproduced or circulated in its entirety. Any quotes

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The point at which you

More information

Small Businesses. Travel Costs

Small Businesses. Travel Costs Small Businesses Travel Costs During the Summer Budget it was proposed that tax relief for travel and subsistence would be restricted for contractors who were employed through an umbrella company, or employment

More information

Spotlight Key Themes for UK Real Estate in 2015

Spotlight Key Themes for UK Real Estate in 2015 Savills World Research Commercial, Residential & Rural Spotlight Key Themes for UK Real Estate in 2015 savills.co.uk/research Spotlight Key Themes for UK Real Estate 2015 THE UK REAL ESTATE MARKET IN 2015

More information

Learn how to sell your home today, the efficient way No estate agent or solicitor fees and no delay.

Learn how to sell your home today, the efficient way No estate agent or solicitor fees and no delay. Learn how to sell your home today, the efficient way No estate agent or solicitor fees and no delay. Today's housing market finds many sellers in a changing situation that demands they sell their home

More information

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives?

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives? Buyer s Guide : Content Page 1: What is equity release? Page 2: Is equity release the right choice for you? Page 3: Protecting yourself If it isn t right for you, what are the alternatives? Page 4: Lifetime

More information

DOWNsizing. Finding the right property to suit your lifestyle. Spring/Summer 2014. savills.co.uk

DOWNsizing. Finding the right property to suit your lifestyle. Spring/Summer 2014. savills.co.uk DOWNsizing Finding the right property to suit your lifestyle Spring/Summer 2014 savills.co.uk savills.co.uk Please contact us for further information To discuss your property needs and how you can benefit

More information

IMAGE. Buy to Let Guide. What to consider before turning your pension into a buy-to-let investment

IMAGE. Buy to Let Guide. What to consider before turning your pension into a buy-to-let investment IMAGE Buy to Let Guide What to consider before turning your pension into a buy-to-let investment Withdrawing money from pension pots to fund a buy-to-let investment could potentially become a more popular

More information

Buy-to-let guide about tax

Buy-to-let guide about tax Perrys Chartered Accountants Buy-to-let guide about tax Introduction As a buy-to-let landlord it is important you know about tax and how it affects you and your investment. This is why Perrys Chartered

More information

Current Issues April 2015

Current Issues April 2015 In this issue: Pension tax: a post-election change - whoever wins Further help to buy from the government A savings tax cut Selling your pension annuity Income tax changes Pension tax: a post-election

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The higher rate threshold

More information

ISAs GUIDE. An introduction to Individual Savings Accounts

ISAs GUIDE. An introduction to Individual Savings Accounts ISAs GUIDE 2015 An introduction to Individual Savings Accounts ISAs GUIDE 2015 Introduction Most people s experience of saving starts in childhood. Your parents encourage you to save up a few pennies,

More information

Spotlight Bridging the Gap in Housing November 2013

Spotlight Bridging the Gap in Housing November 2013 Savills World Research UK Residential Spotlight Bridging the Gap in Housing November 2013 SUMMARY Over two million households excluded from the property market by the credit crunch Excluded households:

More information

Your guide to Annuities

Your guide to Annuities Your guide to Annuities From Standard Life It s good to know what s around the next corner 1 of 24 If you would like a secure source of income and have a built up pension fund or a lump sum to invest,

More information

RELEASING CASH FROM YOUR HOME

RELEASING CASH FROM YOUR HOME RELEASING CASH FROM YOUR HOME As a recommended adviser for the Society of Later Life Advisers (SOLLA) we are frequently asked to advise on home income/equity release plans. These notes are designed to

More information

equity loans explained State money, interest-free for five years

equity loans explained State money, interest-free for five years help TO buy Your guide to the latest government-backed scheme Produced by In association with equity loans explained State money, interest-free for five years easy access How to apply INTROducTION The

More information

Inheritance tax planning and the family home

Inheritance tax planning and the family home Inheritance tax planning and the family home An overview and options for lifetime planning technical factsheet Introduction Leading tax and legal experts agree that a family home should only form part

More information

Making the most of your retirement

Making the most of your retirement Making the most of your retirement A guide to equity release and our advice service Provided by Contents Welcome from the Age UK Group 3 Do more with your retirement 4 What is equity release? 5 Is equity

More information

EQUITY RELEASE GUIDE. Everything you need to know about equity release.

EQUITY RELEASE GUIDE. Everything you need to know about equity release. EQUITY RELEASE GUIDE Everything you need to know about equity release. An informative guide from the equity release specialists The informative guide to equity release... Equity release has come a long

More information

Planning and implementing property investment strategies for your children's long-term benefit

Planning and implementing property investment strategies for your children's long-term benefit Planning and implementing property investment strategies for your children's long-term benefit This is an excerpt from Lawpack s book Property Investment for your Children. To find out more about making

More information

YMCA England response to the House of Lords Select Committee on Economic Affairs inquiry into the economics of the United Kingdom Housing Market.

YMCA England response to the House of Lords Select Committee on Economic Affairs inquiry into the economics of the United Kingdom Housing Market. Economic Affairs Committee Committee Office House of Lords London SW1A 0PW 14 December 2015 Dear Sir or Madam, YMCA England response to the House of Lords Select Committee on Economic Affairs inquiry into

More information

Contributing the Family Home to Super

Contributing the Family Home to Super Contributing the Family Home to Super An innovative proposal designed to assist with the accommodation and income needs of older Australians wishing to remain in their own homes. Abstract There has been

More information

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 CONTENTS What is equity release?... 3 How much money could I raise through an equity release?... 4 What

More information

The New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution.

The New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution. The New Era of Wealth Transfer Planning #1 American Taxpayer Relief Act Boosts Life Insurance For agent use only. Not for public distribution. In January 2013 Congress stepped back from the fiscal cliff

More information

Arbon House, 6 Tournament Court, Edgehill Drive, Warwick CV34 6LG T. 0845 250 6001 F. 0845 250 6069 E.info@arla.co.uk www.arla.co.

Arbon House, 6 Tournament Court, Edgehill Drive, Warwick CV34 6LG T. 0845 250 6001 F. 0845 250 6069 E.info@arla.co.uk www.arla.co. Written views for the London Assembly Housing Committee investigation into the impact that rent stabilisation measures would have on London s housing market from the Association of Residential Letting

More information

Your guide to. Equity Release. with no obligation

Your guide to. Equity Release. with no obligation Your guide to Equity Release Expert advice with no obligation Your introduction to equity release Your retirement should give you the freedom to do all the things in life you haven t had time for. However,

More information

When Even Wealthy Homeowners Are Using Reverse Mortgages, The Question Is: Why Aren't You?

When Even Wealthy Homeowners Are Using Reverse Mortgages, The Question Is: Why Aren't You? When Even Wealthy Homeowners Are Using Reverse Mortgages, The Question Is: Why Aren't You? Buck Wargo, Senior Editor, NiC Magazine NowItCounts.com 10/09/2014 When even the so called "mass affluents" and

More information

Age 75 Annuities Consultation. Response from Dr. Ros Altmann 9 th September 2010

Age 75 Annuities Consultation. Response from Dr. Ros Altmann 9 th September 2010 Age 75 Annuities Consultation Response from Dr. Ros Altmann 9 th September 2010 The Government has issued a consultation on its proposals to reform the Age 75 rules for mandatory annuity purchase from

More information

EVENT GUIDE. Oxfordshire s biggest affordable homes show. Help to Buy South. The Kassam Stadium, Autumn 2014 SHARED OWNERSHIP HELP TO BUY RENT TO BUY

EVENT GUIDE. Oxfordshire s biggest affordable homes show. Help to Buy South. The Kassam Stadium, Autumn 2014 SHARED OWNERSHIP HELP TO BUY RENT TO BUY Oxfordshire s biggest affordable homes show SHARED OWNERSHIP HELP TO BUY RENT TO BUY Help to Buy South The Kassam Stadium, Autumn 2014 EVENT GUIDE Find out about homes and schemes available, including

More information

STRENGTHENING THE INCENTIVE TO SAVE: A CONSULTATION ON PENSIONS TAX RELIEF

STRENGTHENING THE INCENTIVE TO SAVE: A CONSULTATION ON PENSIONS TAX RELIEF STRENGTHENING THE INCENTIVE TO SAVE: A CONSULTATION ON PENSIONS TAX RELIEF Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association of Taxation Technicians (ATT) is pleased

More information

TAXATION OF PRIVATE LANDLORDS

TAXATION OF PRIVATE LANDLORDS TAXATION OF PRIVATE LANDLORDS The Tax Position of the Small Private Landlord The private rented sector is possibly the only sector of the economy where the tax and regulatory systems work to prevent the

More information

In this issue: employee benefits wealth management pensions life assurance mortgages healthcare. Summer 2015

In this issue: employee benefits wealth management pensions life assurance mortgages healthcare. Summer 2015 independent financial advice everyone can follow... Summer 2015 employee benefits wealth management pensions life assurance mortgages healthcare In this issue: Pensions freedom: what s in store? The investment

More information

Our Home Reversion Plan. Enjoy your retirement by unlocking the value of your home

Our Home Reversion Plan. Enjoy your retirement by unlocking the value of your home Our Home Reversion Plan Enjoy your retirement by unlocking the value of your home I can now have the garden I ve always wanted. 1 Bridgewater Equity Release Limited the Home Reversion Plan experts Bridgewater

More information

Pensions, savings and business taxation

Pensions, savings and business taxation Pensions, savings and business taxation Stuart Adam Pensions lifetime allowance Reduce the lifetime limit from 1.25m to 1m from April 2016 Uprate it with CPI inflation from April 2018 Raises 0.6bn per

More information

Retirement Income White Paper Insights Presentation

Retirement Income White Paper Insights Presentation Retirement Income White Paper Insights Presentation Alun Stevens Jack Ding Nathan Bonarius Agenda Background Preliminary projections What are the risks? What are the possible solutions? Purpose of presentation

More information

KEY GUIDE. Investing for income when you retire

KEY GUIDE. Investing for income when you retire KEY GUIDE Investing for income when you retire Planning the longest holiday of your life There comes a time when you stop working for your money and put your money to work for you. For most people, that

More information

Contents Introduction To Annuities Flexibility of Annuity Types of Annuity About Pensioncalculator.org

Contents Introduction To Annuities Flexibility of Annuity Types of Annuity About Pensioncalculator.org Annuities Guide Contents Introduction To Annuities What is an Annuity? Why Bother with an Annuity? Main Advantages of Annuities Pros and Cons Flexibility of Annuity Buying an annuity Tax & National Insurance

More information

Briefing Paper on Equity Release

Briefing Paper on Equity Release COUNCIL of MORTGAGE LENDERS Briefing Paper on Equity Release What is equity release? 1. Equity is the difference between any mortgage you may have and the value of your home. Equity release is a way of

More information

THE ARLA REVIEW & INDEX

THE ARLA REVIEW & INDEX THE ARLA REVIEW & INDEX for Residential Investment FOURTH Quarter 2014 Fourth Quarter 2014 Compared with three months ago, the average weighted rental return for houses is up from 5.0% to 5.1%, its second

More information

RELEASING CASH FROM YOUR HOME

RELEASING CASH FROM YOUR HOME RELEASING CASH FROM YOUR HOME As a recommended SOLLA adviser we are frequently asked to advise on home income/equity release plans. These notes are designed to provide some general background to clients

More information

Financial Planning for Contractors

Financial Planning for Contractors Financial Planning for Contractors Contents 1.0 Contractor Mortgages Page 1 2.0 Contractor Pensions Page 2 3.0 Critical Illness and Income Replacement Page 4 4.0 Contractor Life Insurance Page 5 5.0 Relevant

More information

Freedom. Contentment 85% Retirement 20/20. Slowing down gradually. Volunteering Disappointment. Security. Financial stress. Excitement.

Freedom. Contentment 85% Retirement 20/20. Slowing down gradually. Volunteering Disappointment. Security. Financial stress. Excitement. REPORT 2015 Retirement 20/20 Achieving retirement fulfillment years CELEBRATING FamilyProsperity Excitement Freedom Having to work Security Fulfilling work Slowing down gradually Boredom Financial stress

More information

Crisis response to the review of barriers to institutional investment in private rented homes April 2012

Crisis response to the review of barriers to institutional investment in private rented homes April 2012 Crisis response to the review of barriers to institutional investment in private rented homes April 2012 Introduction Crisis, the national charity for single homeless people, warmly welcomes this review.

More information

Mortgage. Protection. Welcome... Atlantic Coast Associates

Mortgage. Protection. Welcome... Atlantic Coast Associates Winter 2015/16 Mortgage & Protection news The newsletter from Atlantic Coast Associates ATLANTIC COAST ASSOCIATES Independent Financial Advisers Should you be assessing both your borrowing and protection

More information

KEY TAX POINTS FROM TODAY S BUDGET

KEY TAX POINTS FROM TODAY S BUDGET KEY TAX POINTS FROM TODAY S BUDGET In his repeated desire to put forward a Budget for The Next Generation, has the Chancellor boldly gone where no Chancellor has gone before? The Elman Wall Tax Team has

More information

NISAs a simple explanation

NISAs a simple explanation NISAs a simple explanation A NISA is a New Individual Savings Account. As the name suggests, these are accounts that can be accessed by individuals (you cannot have a NISA in joint names). ISAs were introduced

More information

London Mortgages Forum: The Future of Buy to Let?

London Mortgages Forum: The Future of Buy to Let? London Mortgages Forum: The Future of Buy to Let? Charles Haresnape Managing Director, Mortgages & Commercial Lending FOR INTERMEDIARY USE ONLY Aldermore Bank PLC is authorised by the Prudential Regulation

More information

The chain. Unravelling the links between sales

The chain. Unravelling the links between sales The chain Unravelling the links between sales Autumn 2015 The story so far Contents More homes have been sold without an onward chain in 2015 than in any of the previous years. The growth in the number

More information

The pension freedoms are one of the

The pension freedoms are one of the PARLIAMENTHILLMONEYTALK The personal finance newsletter for Parliament Hill member organisations published by Lighthouse Financial Advice AUTUMN 2015 How to reduce tax on your pension and other assets

More information

A housing market to be proud of

A housing market to be proud of A housing market to be proud of Introduction This document looks at the mortgage market and its vital contribution to delivering a successful housing strategy. Mortgage lenders play a key role in all housing

More information

Ken MacDonald & Co Lawyers and Estate Agents The Buying Process: A Guide

Ken MacDonald & Co Lawyers and Estate Agents The Buying Process: A Guide Ken MacDonald & Co Lawyers and Estate Agents The Buying Process: A Guide 1. Introduction Buying a property can be extremely exciting but also very daunting if you do not know where to start or what is

More information

PLANNING MATTERS. New Tax Measures for Families Introduced. Quarterly Financial Planning Newsletter from Coleman Wealth

PLANNING MATTERS. New Tax Measures for Families Introduced. Quarterly Financial Planning Newsletter from Coleman Wealth PLANNING MATTERS Quarterly Financial Planning Newsletter from Coleman Wealth Fall 2014-1 st Edition Welcome to Planning Matters, the Coleman Wealth Financial Planning Newsletter! We developed our new financial

More information

Commercial Property Investment Guide. Your guide to purchasing and managing a commercial investment property

Commercial Property Investment Guide. Your guide to purchasing and managing a commercial investment property Commercial Property Investment Guide Your guide to purchasing and managing a commercial investment property Contents Introduction 1 The benefits of commercial property investment 2 Why invest in property?

More information

primecentrum Why UK Buy-To-Let 2016

primecentrum Why UK Buy-To-Let 2016 primecentrum Why UK Buy-To-Let 2016 Would you like to know more about investing in UK buy-to-let market? 1. What? 3. Where? 5. Who? 2. Why? 4. How?...Do it with our guide in 5 simple steps! 2016 marks

More information

Market Intelligence. Autumn 2012

Market Intelligence. Autumn 2012 Market Intelligence Autumn 2012 Average per square foot values January August 2012 W10 Flat 730 House 765 All 749 Ladbroke Grove W2 (Westbourne Grove & Bayswater) Flat 924 House 1,230 All 971 Westbourne

More information

Bristol Housing Market in 2015 A Summary. In brief: Housing Stock

Bristol Housing Market in 2015 A Summary. In brief: Housing Stock Bristol Housing Market in 2015 A Summary In brief: Demand is up and there continues to be an undersupply of new homes, both for ownership and rent. There is evidence to suggest that, during the last year,

More information

Strategy Paper: Financial Planning for Generation-Y. SMSF Specialists Investment Management Financial Planning Accounting

Strategy Paper: Financial Planning for Generation-Y. SMSF Specialists Investment Management Financial Planning Accounting Strategy Paper: 190 Through Road Camberwell VIC 3124 T: (03) 9809 1221 F: (03) 9809 2055 enquiry@gfmwealth.com.au www.gfmwealth.com.au ABN 69 006 679 394 Financial Planning for Generation-Y SMSF Specialists

More information

Client Update George Osborne s Chocolate Box. UK Budget 2016.

Client Update George Osborne s Chocolate Box. UK Budget 2016. 1 Client Update George Osborne s Chocolate Box. UK Budget 2016. LONDON Richard Ward rward@debevoise.com Ceinwen Rees crees@debevoise.com Paul Eastham peastham@debevoise.com Ellie Mends emends@debevoise.com

More information

OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX

OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX CONTENTS Understanding inheritance tax 3 Should I be worried about inheritance tax? 4 Inheritance tax planning 6 Using gifts 8 Using trusts 10

More information

Your Guide to Equity Release

Your Guide to Equity Release Equity release has provided me with financial stability. I now have the opportunity to help my family, go on holiday, and make some home improvements. Mr W, East Sussex Your Guide to Equity Release Contents

More information

Why Cash-Flow Positive Property Is Essential To Building Your Property Portfolio

Why Cash-Flow Positive Property Is Essential To Building Your Property Portfolio Why Cash-Flow Positive Property Is Essential To Building Your Property Portfolio Contents 1. Letter from the CEO: 3 2. Introduction 4 3. What are cash flow positive properties? 5 4. Why it s important

More information

Buy-to-Let Investor Guide

Buy-to-Let Investor Guide Buy-to-Let Investor Guide residential letting www.linleyandsimpson.co.uk Buy-to-let is a British phrase referring to the purchase of a property specifically to let out. A Buy-to-Let mortgage is a mortgage

More information

Total Asset, Life Cycle, Wealth Management

Total Asset, Life Cycle, Wealth Management Total Asset, Life Cycle, Wealth Management Total Asset, Life Cycle, Wealth Management is the management of total financial needs and total financial assets over an individual s lifetime. All financial

More information

Mortgage advice you can depend on

Mortgage advice you can depend on Our Mortgage advice you can depend on Whether buying your first home, buying to let, or remortgaging, this guide tackles the main considerations. If you want to learn more and receive advice tailored to

More information

A guide to mortgages

A guide to mortgages A guide to mortgages Contents An Introduction to mortgages 3 What is a mortgage? 4 Choosing a mortgage - where to start 5 What to consider before getting a mortgage? 6 Mortgage and repayment types 8 Interest

More information

INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO

INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO INVESTING Contents Helping you reach your financial goals 3 Introducing the different types of investments 4 Where could you invest? 4 Where

More information

Annuity Owner Mistakes

Annuity Owner Mistakes Annuity Owner Mistakes Tips and Ideas That Could Save You Thousands Provided to you by: William E. Watson III, RFC Registered Financial Consultant Annuity Owner Mistakes Written by Javelin Marketing, Inc.

More information

The Stamp Duty Land Tax Issue

The Stamp Duty Land Tax Issue The wages of sin are death, but by the time taxes are taken out, it's just sort of a tired feeling. Paula Poundstone Next to being shot at and missed, nothing is really quite as satisfying as an income

More information

Topics. AMA Private Health Insurance Comparison 2016 Budget Breakdown Top Ten Tax Tips for 2016. AMA Private Health Insurance Comparison

Topics. AMA Private Health Insurance Comparison 2016 Budget Breakdown Top Ten Tax Tips for 2016. AMA Private Health Insurance Comparison Prime Time Advisory News Update May 2016 Newsletter Topics AMA Private Health Insurance Comparison 2016 Budget Breakdown Top Ten Tax Tips for 2016 AMA Private Health Insurance Comparison Recent price increases

More information

Are Reverse Mortgages Really Expensive? By Diogo Teixeira June 10, 2008

Are Reverse Mortgages Really Expensive? By Diogo Teixeira June 10, 2008 Are Reverse Mortgages Really Expensive? By Diogo Teixeira June 10, 2008 Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

More information

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:-

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- 1. Executive Summary For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- Ø A place to live, with security of tenure.

More information

Equity Release Guide. www.seniorissues.co.uk

Equity Release Guide. www.seniorissues.co.uk Equity Release Guide www.seniorissues.co.uk For more information or to speak to one of our trained advisers please telephone our Senior Issues Team on 0845 855 4411 The Caesar & Howie Group 7/3/2008 EQUITY

More information

Chapter 1 The Investment Setting

Chapter 1 The Investment Setting Chapter 1 he Investment Setting rue/false Questions F 1. In an efficient and informed capital market environment, those investments with the greatest return tend to have the greatest risk. Answer: rue

More information

SUBMISSION TO INQUIRY INTO AFFORDABLE HOUSING. Prepared by National Policy Office

SUBMISSION TO INQUIRY INTO AFFORDABLE HOUSING. Prepared by National Policy Office SUBMISSION TO INQUIRY INTO AFFORDABLE HOUSING Prepared by National Policy Office March 2014 COTA Australia Authorised by: Ian Yates AM Chief Executive iyates@cota.org.au 0418 835 439 Prepared by: Jo Root

More information

Everything you need to know about equity release.

Everything you need to know about equity release. Everything you need to know about equity release. An informative guide from the equity release specialists Welcome to the Retiredom guide to equity release. Equity release has come a long way since regulation

More information

Making More Out of Buy-to-Let. The Bentley Hotel Friday 1 st November 2013

Making More Out of Buy-to-Let. The Bentley Hotel Friday 1 st November 2013 Making More Out of Buy-to-Let The Bentley Hotel Friday 1 st November 2013 Welcome James Pinchbeck Marketing Partner, Streets Chartered Accountants Managing Director Association of Residential Letting Agents

More information

Basic Guide to Retirement Income Options

Basic Guide to Retirement Income Options Basic Guide to Retirement Income Options Can I afford to retire? Which retirement income solution is best for me? Should I take all my tax-free cash entitlement? Will my family benefit from my pension

More information

How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide.

How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide. How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide. www.increaseyourpension.co.uk Welcome to making investing simple Investing doesn t have to

More information

Life and protection insurance explained

Life and protection insurance explained protection? Life and protection explained A guide to personal and family protection This guide explains the types of life and protection available and how they can offer you valuable peace of mind. If

More information

Reforms to the Real Estate Investment Trust regime: comments on the consultation document released on 4 April 2012

Reforms to the Real Estate Investment Trust regime: comments on the consultation document released on 4 April 2012 Reforms to the Real Estate Investment Trust regime: comments on the consultation document released on 4 April 2012 Grant Thornton UK LLP (Grant Thornton) has considered the questions raised in the consultation

More information

L&C Guide to First Time Buyer Mortgages

L&C Guide to First Time Buyer Mortgages L&C Guide to First Time Buyer Mortgages 0800 373 300 www.lcplc.co.uk Foreword By David Hollingworth Head of Communications It's not easy being a First Time Buyer all you want is advice on the right mortgage,

More information

Retirement. Providing solutions for your future

Retirement. Providing solutions for your future Retirement Providing solutions for your future ,,,, We firmly believe that retirement is a time to enjoy the rewards of your lifes hard work and having access to the funds to turn your ideas and dreams

More information

Tax Planning Via the Family Home

Tax Planning Via the Family Home Take a typical example, Arthur and his wife Angela. Their circumstances are summarised in the box. They have a heavy IHT liability when they both die (or at least, their children do); what can they do?

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

The missing rung: London s housing squeeze

The missing rung: London s housing squeeze The missing rung: London s housing squeeze KATIE EVANS AND BEN RICHARDS April 2016 THE HOUSING AFFORDABILITY GAP We all know that life in the capital is expensive. Generally, wages are higher in the capital

More information

Let s work together. Intermediary product guide.

Let s work together. Intermediary product guide. Let s work together Intermediary product guide. Launched in 2009, Aldermore champions Britain s businesses. We offer straightforward banking products and services to small and medium-sized businesses and

More information

COMMERCIAL LEASE TRENDS FOR 2014

COMMERCIAL LEASE TRENDS FOR 2014 COMMERCIAL LEASE TRENDS FOR 2014 Notes from a Presentation given by N B Maunder Taylor BSc (Hons) MRICS, Partner of Maunder Taylor The following is a written copy of the presentation given by Nicholas

More information

REDUCTION IN STAMP DUTY FOR OLDER DOWNSIZERS COULD BRING BENEFITS FOR THE UK HOUSING MARKET & THE EXCHEQUER

REDUCTION IN STAMP DUTY FOR OLDER DOWNSIZERS COULD BRING BENEFITS FOR THE UK HOUSING MARKET & THE EXCHEQUER REDUCTION IN STAMP DUTY FOR OLDER DOWNSIZERS COULD BRING BENEFITS FOR THE UK HOUSING MARKET & THE EXCHEQUER In the UK today, an estimated 5.4 m households aged 65 and over are under-occupying family property

More information