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Robert Peston: 'parents - Sell Your Homes To Help Children Buy Property'

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Yes, IHT exemption is a very strong disincentive to sell (the family home)

Let's say the house is £600k, that means the IHT exemption is worth up to £240k

Sell up, buying a smaller house (and, therefore likely a smaller IHT exemption) in order to be able to give the kids a few bob now to spunk by buying at the top of the market.

Doesn't sound like a plan that should be touted too heavily to me

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Typical 'Middle Englander' hypocracy.

When there are stories about the working poor and their kids they all bleat about 'personal responsibility'.

However when they are urged to excersise responsibility for seeing that their own offspring are adequately housed they whine and demand Soviet era policies such as 'help to buy'.

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I'm not going to bother reading the article, but can I presume that Peston himself has already sold his family home?

To be fair, his son is only around 18, so probably not independent quite yet.

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They immediately know the value though..... and some here claims banks wouldn't like £300K mortgage on such homes owned outright.

It's actually the boomers carrying the HPC risk now. And we have ever more catalysts for HPC.

My house is in the Home Counties. With five bedrooms, it's probably worth around £850,000 today. But I'm far from rich, sadly. That rather large figure is just an accident of the passing years. I've been here since 1970, when I bought it with my late husband Jacques for £10,950.

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But I'm far from rich, sadly. That rather large figure is just an accident of the passing years.

********. She bought a very nice five-bedroom house in her 20s. She's richer than any 20-something today has a dream of being.

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Yes, IHT exemption is a very strong disincentive to sell (the family home)

Let's say the house is £600k, that means the IHT exemption is worth up to £240k

Sell up, buying a smaller house (and, therefore likely a smaller IHT exemption) in order to be able to give the kids a few bob now to spunk by buying at the top of the market.

Doesn't sound like a plan that should be touted too heavily to me

There's a carry over IHT from budget, for downsizers. An allowance. An 'IHT Credit'. And as I understand it, it partly applies from 8th July 2015.

Anyone who chooses to downsize on or after 8th July 2015, will be able to make use of this credit.

They should be rushing to sell, from the higher end, before nextdoor neighbour beats them to it, accepting less than they thought their home worth.

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There's a carry over IHT from budget, for downsizers. An allowance. An 'IHT Credit'. And as I understand it, it partly applies from 8th July 2015.

They should be rushing to sell, from the higher end, before nextdoor neighbour beats them to it, accepting less than they thought their home worth.

You are right and that is something I didn't know

https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band

"The additional nil-rate band will also be available when a person downsizes or ceases to own a home on or after 8 July 2015 and assets of an equivalent value, up to the value of the additional nil-rate band, are passed on death to direct descendants."

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The inheritance tax cut is disgusting.

How can there be a 'level playing field' when some of my competitors get a £1m head start? It's almost impossible for me to close that gap, starting from nothing.

The ability to leave a house to my own beneficiaries is meaningless, because the way things are going I won't have a house to leave. Inheritance tax should be raised to the point where an inheritance is a nice optional bonus, rather than the only way to get ahead in life.

I thought we wanted a meritocracy.

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Yes that link Pipllman; thanks.

It's smoke and mirrors. The higher allowance, combined with a measure to encourage downsizing (IHT allowance carry down)- with markets moving at the margin.

It's more of a catalyst for HPC than a give-away, imo.

Perhaps they are planning for think house prices will fall in which case raising the threshold won't make any difference but they will be seen to have been helping their voters and of course any HPC can be blamed on Greece/implosion of the Euro(pe).

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The inheritance tax cut is disgusting.

How can there be a 'level playing field' when some of my competitors get a £1m head start? It's almost impossible for me to close that gap, starting from nothing.

The ability to leave a house to my own beneficiaries is meaningless, because the way things are going I won't have a house to leave. Inheritance tax should be raised to the point where an inheritance is a nice optional bonus, rather than the only way to get ahead in life.

I thought we wanted a meritocracy.

Keeps the children of wealthy parents onside with Tory friendly boomer poilcy.

Imo said children appear infantilized by their expectations and seem more irresponsible than those that have to stand on their own two feet.

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The inheritance tax cut is disgusting.

How can there be a 'level playing field' when some of my competitors get a £1m head start? It's almost impossible for me to close that gap, starting from nothing.

The ability to leave a house to my own beneficiaries is meaningless, because the way things are going I won't have a house to leave. Inheritance tax should be raised to the point where an inheritance is a nice optional bonus, rather than the only way to get ahead in life.

I thought we wanted a meritocracy.

England is not a meritocracy. never has been and never will be.

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The inheritance tax cut is disgusting.

How can there be a 'level playing field' when some of my competitors get a £1m head start? It's almost impossible for me to close that gap, starting from nothing.

The ability to leave a house to my own beneficiaries is meaningless, because the way things are going I won't have a house to leave. Inheritance tax should be raised to the point where an inheritance is a nice optional bonus, rather than the only way to get ahead in life.

I thought we wanted a meritocracy.

Your assuming the inherited wealth of others is somehow holding you back, it isn't. It's the government policy encouraging rent seeking behavior that is holding you back. Without this rent seeking, this wealth will find it's way through the financial system and into productive investment.

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Your assuming the inherited wealth of others is somehow holding you back, it isn't. It's the government policy encouraging rent seeking behavior that is holding you back. Without this rent seeking, this wealth will find it's way through the financial system and into productive investment.

The inherited wealth of others gifts them a nice house while I can't afford one no matter how hard I work.

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I guess any previously unaware parent given that advice from the likes of Peston will finally click that things related to property are way off beam - if it hasn't clicked with them already. I also guess that it's the sort of advice that could easily turn out to alter voting patterns - for a variety of reasons.

Maybe that's the intention.

Edited by billybong

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Just a reminder. I think this may become important when money gets tight.

Yes, IHT exemption is a very strong disincentive to sell (the family home)

Let's say the house is £600k, that means the IHT exemption is worth up to £240k

Sell up, buying a smaller house (and, therefore likely a smaller IHT exemption) in order to be able to give the kids a few bob now to spunk by buying at the top of the market.

Doesn't sound like a plan that should be touted too heavily to me

There's a carry over IHT from budget, for downsizers. An allowance. An 'IHT Credit'. And as I understand it, it partly applies from 8th July 2015.

Anyone who chooses to downsize on or after 8th July 2015, will be able to make use of this credit.

They should be rushing to sell, from the higher end, before next-door neighbour beats them to it, accepting less than they thought their home worth.

You are right and that is something I didn't know

https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band

"The additional nil-rate band will also be available when a person downsizes or ceases to own a home on or after 8 July 2015 and assets of an equivalent value, up to the value of the additional nil-rate band, are passed on death to direct descendants."

It's more of a incentive-catalyst for HPC. Markets move at the margin.

Edited by Venger

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