Schedule 15 was not intended to penalise the elderly says Key Retirement Solutions
Colin Taylor, Managing Director of Key Retirement Solutions comments: “Despite much industry speculation to the contrary, we do not believe that this legislation was written in order to tax vulnerable elderly people who have chosen reversion plans to finance their retirement. The indication, currently coming from the Inland Revenue, is that this legislation is exclusively aimed at closing a tax loophole to prevent tax avoidance through estate planning.
“We believe that the Inland Revenue will use their authority to exclude home reversion schemes from Schedule 15 of the Finance Act 2004. The current speculation in the media is potentially causing a great deal of unnecessary worry and stress for many pensioners. We therefore call for all parties to express their concerns to the Inland Revenue in the interest of clarifying this situation as soon as possible.”