Inheritance Tax Uncertainty: A Stumbling Block for South London Property

Inheritance Tax Uncertainty: A Stumbling Block for South London Property

The property market in South London is facing a significant hurdle: uncertainty around inheritance tax. This issue is causing many potential buyers and sellers to hesitate. Here's what you need to know:

• Market Stagnation: Families are holding off on moving up the property ladder. A couple in their 60s, for instance, has postponed downsizing from their £800,000 home due to fears over tax changes.
• Impact on First-Time Buyers: Young families are saving for deposits but are now hesitant. Parents worry that gifting money could lead to future tax complications.
• Rumours of Change: Speculation about a lifetime cap on gifting is causing concern. This could drastically alter how families support one another financially.
• Potential Tax Burden: If the residence nil-rate band is scrapped, couples could see their tax-free threshold drop from £1 million to £650,000, affecting around 30,000 families.
• Advice for Sellers: Sellers should seek cash buyers or those not in a chain. This strategy can help navigate the current uncertainty and expedite sales.

As a South London property expert, I see both risks and opportunities in this situation. It's essential to stay informed and proactive. Whether you're a buyer, seller, or investor, understanding these changes is crucial for making smart decisions in the property market.

What are your thoughts on the inheritance tax situation? Let's discuss!

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If you are looking for help with your property in London – Sales, Rentals, Investments.
Reach out: 07837 093554 or email me at jeroen@claphampropertyblog.com