By Marc Shoffman
Inheritance tax (IHT) changes could penalise older homeowners and create a form of “social engineering” for downsizers, a buying agent has warned.
Chancellor Rachel Reeves is expected to raise taxes in her Autumn Budget this month, with expectations of IHT reforms.
She could increase the IHT rate or reduce the tax-free threshold when valuing an estate.
West Country agent Rupert Stephenson, of Black Brick’s Country & Coast Department, warns that older homeowners have been particularly spooked by the prospect of paying more
He suggested this could be reflected in an increase in larger homes being listed on Rightmove.
Stephenson said: “I definitely saw this trend emerging in the last year of people who probably should have moved in their late 70s and early 80s but had put it off because of the pandemic starting to downsize.
“They wanted to quickly pass on their wealth to their children.”
He suggests Stamp Duty would be a better way of supporting and encouraging downsizers, adding: “It would be good for the economy as a whole – house builders, white goods, you name it. Downsizers need to be encouraged, but punishing them with IHT is social engineering.
“People want stability, not loads of changes all the time.”
