It was announced in the June 2010 budget that the inheritance tax nil rate band would remain frozen at £325,000 until 2014-15. It had been announced in the Autumn Statement that, for 2015-16, the band would be increased to £329,000, however the freeze at £325,000 has now been extended for another three years (until 2017-18) as part of the package to cap social care costs.
Help to Buy for homes
Two schemes were announced to help people to buy homes.
The first is a government loan of up to 20% of the value of a new home, interest free for the first five years and repayable when the house is sold. This will be open to all buyers, not just those buying for the first time and has no income limits. A 5% deposit will be needed, and the house cannot cost more than £600,000. This scheme will be available from 1 April 2013.
The second is aimed at helping those buying any home, not just a new one, and provides lenders with the option to purchase a government guarantee, effectively for 14.25% of the value of the loan for seven years. This will be available for three years from the start of 2014.
The new single tier pension will be introduced from 2016.
This summary is published for the information of clients. It provides only an overview of the main proposals announced by the Chancellor of the Exchequer in his Budget Statement, and no action should be taken without consulting the detailed legislation or seeking professional advice.