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Chancellor Jeremy Hunt should be wary of placing a greater financial burden on homeowners in next weeks’s Autumn Statement, an agent has warned.
Scottish agency DJ Alexander has warned that that the rumoured extension of the freeze on Inheritance Tax (IHT) and Capital Gains Tax (CGT) thresholds would be an easy income grab for the Government but could anger homeowners.
The brand’s chief executive David Alexander said the Conservatives have to be wary of becoming the party that taxes homeownership, that hits savers, and punishes hardworking people for providing a roof over their heads and a home for their families.
He said: “Targeting property is an easy hit for a chancellor as it can’t be moved abroad or hidden in a balance sheet, but the concern is that this is an option that has become all too familiar.
“Last year Rishi Sunak introduced a freeze on the thresholds for IHT to 2025-26 with the current chancellor expected to extend this to 2027-28.
“Given that the current threshold of £325,000 for IHT was introduced in 2009 this would be a 20-year freeze on the rate.
“To put this into perspective if the IHT threshold had kept pace with inflation it should, by September 2022, be at £464,643 and most of that increase does not include the record levels of inflation experienced this year.”
Alexander added that a further freeze on the CGT allowance on second homes and rental properties during the Autumn Statement on 17 November many may feel justified, but he warned punishes people for investing their wealth in property is not a good look for the Conservatives.
He added: “Nobody expects to come out of the Autumn Statement better off but there is a real danger in singling out certain groups in society who may have accumulated wealth through property. The Conservatives have always been known as the property-owning party, but they now seem in danger of damaging this reputation as they seek ever more punitive means of balancing the books.
“Voters have long memories and these moves, if implemented, will impact people over the period of the next General Election so Government needs to be aware of the potential consequences of these actions at the ballot box.”
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Out of ideas as to where to get the cash back from! - select easy targets who will have no option but to pay. Don't target large corporations or companies as they have access to clever accountants and lawyers who will tie them up in knots. Over-generous Furlough Scheme helped dig the enormous financial hole and the cash, in the main, went to people like car dealerships who still managed to trade and make profit. Don't forget the fraudsters who also had their nose in the trough. I think you can rely on it being the property owning public who stump up the funds. Have a feeling they know they will be totally walked on at the next election so they don't care who they financially walk on now.
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