In his emergency budget announcement this lunch time, George Osborne announced three major changes to the UK property market. His cherry on top was cutting inheritance tax for anything up to the £1m, so that those passing on their house to the next generation of their family would not be penalised for doing so.
Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, commented:
“Today’s announcement has given the government’s property death tax a new lease of life and is a small step in the right direction. As many predicted, the abolition of inheritance tax up to the £1m has thrown many a small bone. Personally I feel it an outrage anyone should have to pay tax to pass their estate to the next generation of their family, regardless of the value of it, having paid tax on it in various government guises throughout their life.
To put this into perspective, this affects 98% of property transactions so far in 2015, which have been under the £1m threshold.
I think George Osborne has used it as a bit of a smoke screen to detract from the glaring issue of housing supply, which he has yet again failed to address in any meaningful way.”