Elderly people who have taken out equity when selling their homes to boost their retirement capital face unexpected tax liabilities because of the Treasury's attempts to close inheritance tax loopholes, warn tax experts.
Accountancy Age, 25 Oct 2004
Experts warn that people who have sold their homes to companies using home-reversion schemes could be caught up in the Treasury's attempts to stem the number of rich property owners avoiding inheritance tax, The Sunday Times reported.
Those who have used these schemes may now face an income-tax charge on the cash taken from their homes.
The clampdown is part of the pre-owned assets legislation announced in last year's Pre-Budget report but was reportedly not intended to capture pensioners.
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