The Government first announced plans for a shared ownership right to buy in October 2019. At the time the sector raised concerns about the impact the plans would have on housing associations ability to borrow. An election and a pandemic later the Government announced, during the CIH Housing Festival last week, the return of the right to shared ownership as part of its Affordable Homes Programme (AHP).
From 3 December 2014, a surviving spouse can inherit their deceased partner’s ISA investments and continue to benefit from their tax-free element.
In addition, from 6 April 2015, the ISA allowances are to be increased.
Further changes have been announced for pensions. From April 2015 individuals who die under the age of 75 with remaining uncrystallised drawdown defined contribution pension funds or a joint life or guaranteed annuity will be able to pass these on to any beneficiary tax free where no payments have been made to the beneficiary before that date.
There has been no rise in the ‘nil rate’ band for inheritance tax despite suggestions of significant increases.
The proposal for a settlement nil rate band has been withdrawn. Nevertheless, new measures are to be brought in to clamp down on tax avoidance through the use of multiple trusts. Exactly how these will work and whether settlements and trusts set up before the date of the changes will be caught is not known.
For deaths occurring after 19 March 2014, the complete Inheritance Tax exemption awarded to members of the armed forces, who die from an injury or disease contracted from active service, has been extended to personnel in the emergency services, some overseas aid workers and those who have received gallantry awarded from the Crown.
Capital Gains Tax
When looking to minimise your tax liability, it is worth reviewing the tighter regulation which has been brought in affecting entrepreneur’s relief on; this applies to goodwill assets which are transferred to a closely related company.
The personal allowance is to be increased to £10,600 for 2015/16 with the higher rate threshold above which individuals will pay tax at 40% increasing to £42,385.
For those who have saved diligently to assist their children or grandchildren in further education, there will be the alternative or additional option of applying for income-contingent loans to study postgraduate courses from 2016/2017.
Stamp Duty Land Tax
From 4 December 2014 this is no longer charged at “slab” rates but at tiered rates. This will benefit all house purchasers except those buying for more than £937,500.
For further information on how these changes may affect your inheritance tax liability and how you can maximise the benefits in your Will, please contact our Personal Planning and Management Team on 0121 212 7404 for more information.
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Two final pieces of the possession jigsaw have been published on 15 September 2020. Mr Justice Knowles’ working group on possession proceedings has issued its guidance on the “overall arrangements” for possession proceedings.
One change proposed by the Building Safety Bill is the introduction of a duty holder regime, which will see statutory responsibility for the safety of higher risk buildings placed on key individuals
Throughout this pandemic, the Competition and Markets Authority (CMA) has been publishing various “Statements on Coronavirus” (Statements) which provide guidance on consumer rights during this time.
A recent increase in COVID-19 cases in the UK means new measures are being put in place in an effort to reduce the risk of a second wave. Whilst the impact of COVID-19 continues to be felt, it is important to remain focused on the sector’s road to recovery.
Sometimes half an hour at a conference gives you the reality that has been staring you in the face all along. That was my experience watching “Change is on the Horizon”
Following our recent e-briefing on Possession Notices, Helen Tucker and Emilie Pownall from our housing litigation team discuss the impact of the changes on social landlords.
Not only has the possession stay been extended until 20 September, the notice periods to be given to tenants has been extended in certain circumstances with some important exceptions.
The Court has confirmed that a party cannot withhold its consent in order to re-write the original bargain.
Following the Grenfell Tower tragedy, building safety continues to be a key concern for social housing providers and their residents.
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