Analysis from Key Retirement’s Pensioner Property Index, which tracks the amount of equity held in property by people over 65 years old in Great Britain, shows that over-65 homeowners now own homes outright worth £1.01 trillion. In the past three months, pensioners who have paid off mortgages earned an average of £19,120 tax-free each from their houses, taking their property wealth to a new record high.
Since 2010, when the index was started, the property wealth of pensioners has increased by approximately 24 per cent (£245 billion), which is worth an average of about £55,000 for each homeowner.
With the rise in property value, more individuals and families are finding themselves with estates estimated to be above the threshold of £325,000 for paying inheritance tax (IHT).
At Beavis Morgan, we can assist with both medium and longer-term financial planning to ensure that you, your family, and ultimately future generations of your family, will benefit from your wealth, in accordance with your wishes. We also offer specific expertise on many aspects of landed estates and their associated rural businesses such as capital taxes planning, including mitigating exposure to inheritance tax and capital gains tax on chattels and land.
Please contact Alan Ford or your usual Beavis Morgan Partner to find out more about how we can assist you to protect your wealth and plan for IHT.