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Are they really family homes if they're still in the names of the parents? If the home is passed down to the kids >7 years before the final parent carks it, there's no tax to pay on it.
NotThamesWater-
Does this work for non-primary homes? I thought they fell under different rules. No idea what was just an assumption. I think the reason more homes aren't passed down more than 7 years before the parent dies is that they then have to pay market rent to the inheritor don't they? And families either feel uncomfortable with that or the parent can't afford it.
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The reason that doesn't tend to happen is that for it to be a true gift the parent then has to pay rent (at market value) to the children.
My point was more that there are already exemptions covering this, just that if properties continue to rise in price they may need updating to reflect that. To be honest, if it were me, I'd only be setting it at the average property price or similar so anything expensive would still get caught.
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Where do the parents live in the meantime?
hoefla
aggi
hugo7
It's a fair point. Family homes being hit by IHT seems harsh but obviously there needs to be a point where you recognise that family home is also loads of money, I guess it's just where you put it.