Are you seeing an increase in gifting properties?

As the autumn budget looms, we are already witnessing the tremors of the looming tax threat, with uncertainty prompting many middle-class savers to reconsider their property portfolios. These early reactions are reminiscent of past policies, as although transferring assets now might feel premature, some see it as securing a lifeboat before the storm. Furthermore, with the sun potentially setting on the golden age of pension inheritance, as looming IHT reforms threaten to remove their privileged status under UK tax law, many households could see their IHT exposure increase significantly. This surge in early inheritance gifting is not only transforming family wealth transfer patterns but also reconfiguring the property market for younger generations. It's akin to a nationwide game of 'pass the parcel', except the prize is property, and everyone's trying to unwrap before the Chancellor's music stops.

I wouldn’t say it was a regular occurrence, until now. Fears of IHT being raised with zeal on families and concerns of other assets being added to Rachel Reeves cauldron with changes in the tax system is causing a little panic. With the budget being around the corner, I have noticed a clear uptick though fear and anger, of people looking to pass on property and other assets as intact as possible, even with the risk that they are making changes that they may not need to make. It certainly does look like Rachel Reeves is happy to cast misery on those individuals and families who have taken risks, worked hard and had a little success. Hows that for motivation to boost the economy. People need to wake up, as it is not a tax on the so called rich at all, it’s a tax on a large number of people, mainly home owners, who’s house has simply gone up in value over the years.

We have seen a sharp increase in new enquiries by clients who want to transfer property to company name or to children.

There is a general consensus now that people believe a significant CGT rise is coming and it more a question of when so plan now.

With the rumours of a potential increase in IHT and CGT, an expectation would be that parents would start gifting properties to their children. However , we have not seen this trend, instead, we are seeing a rise in parents taking a more forward-thinking approach. When purchasing properties, they are increasingly seeking financial advice on how to structure their investments in a tax-efficient way, aiming to minimise future tax liabilities and protect next generations wealth..