Labour plans inheritance tax raid: Jeremy Corbyn sets his sights on YOUR inheritance
LUCKY Britons are set for an unprecedented £1trillion inheritance in the next decade in a massive generational windfall from parents and grandparents.
David Lammy: High earners can afford to pay more tax
The over-50s now own more than 70 per cent of household wealth, which is turning into a financial lifeline for hardpressed children and grandchildren.
Inherited wealth may be the only way many younger people can afford to get on the property ladder, as prices spiral and house shortages bite. At the same time, those age 65 and over are sitting on record levels of property wealth.
Jeremy Corbyn is planning an inheritance tax (IHT) raid if Labour wins the election
However, anyone banking on an inheritance to get on in life could see their hopes dashed if Jeremy Corbyn's Labour Party wins next week's election, as it is planning an inheritance tax (IHT) raid.
Rising property prices and stock markets mean that older people are now vastly wealthier than the younger generation, according to research from estate administration specialists Kings Court Trust.
Leading wealth management firm explains inheritance tax
Many who own a home worth £425,000 or more will not feel particularly wealthy
Home ownership levels for those under 35 have fallen dramatically as house price rises outstrip earnings.
The surge in the FTSE 100, which recently burst through 7500 for the first time, has also boosted the over 50s by driving up the value of their pensions and stocks and shares Isas.
Christopher Jones, sales and marketing director of Kings Court Trust, said the older generation has benefited from generous pension schemes, higher interest rates and more affordable housing: "This meant they could get on the property ladder at a younger age and benefit from the subsequent price rises."
The over-50s now own more than 70 per cent of household wealth
Higher house prices, stagnant wages and lower job security have locked many young people out of the housing market, while rising rents make it hard to build a deposit for a home.
Jones said more than half will die without writing a will or passing on their assets tax efficiently: "It is time the UK's older generation woke up to this problem and made plans to help their children as soon as possible."
Planning will be made harder if Labour triumphs next week and Shadow Chancellor John McDonnell follows through on plans to raise £1billion by charging IHT on homes worth more than £425,000, against £850,000 for couples today.
Inherited wealth may be the only way many younger people can afford to get on the property ladder
With IHT charged at 40 per cent, this could land many families with a massive tax bill running into tens or even hundreds of thousands of pounds.
Tom Selby, senior analyst at wealth adviser AJ Bell, said Jeremy Corbyn will target the wealthiest to fund his spending plans: "Many who own a home worth £425,000 or more will not feel particularly wealthy, especially in London or the South-east.
"Whacking a tax charge on these homes when they are passed on to loved ones after death will be a bitter pill to swallow."
Property prices and stock markets mean older people are now wealthier than the younger generation
Prime Minister Theresa May's "dementia tax" could see family wealth eaten up by care fees, unless she introduces a meaningful cap on total contributions.
Growing numbers of parents and grandparents are taking action to give their children an early inheritance, giving away £15,000 on average, according to new research from equity release specialists Key Retirement.
Technical director Dean Mirfin said the younger generation is struggling to save for a home and pay off student debt: "Parents and grandparents want to help and are already doing a lot with more than half planning major handouts."