Equity Release and Taxation
Looking to raise tax free cash without moving home?
Compare Equity Release Quotes From UK Providers
How your figure is calculated?
The primary factors used to determine the amount of cash you can raise with equity release are:
- Property value – A higher value property will result in a higher equity release calculation
- Age of youngest applicant – If you are applying as a couple the amount of equity you can release will be calculated based on the youngest applicant
- FREE initial consultation for UK Homeowners aged 55 plus
- Full assessment of your circumstances on whether Equity Release is right for you.
- Specialist advice for homeowners on equity release scheme options.
- High level of personal service.
Things to consider
Key Advice, specialist advisers search the whole market to find the right equity release plan for you. They’ll explain all the options available and that taking a plan reduces the value of your estate and may affect any means-tested benefits you’re eligible for.
You have to get specialist advice before releasing equity; it’s the only way to do it. The initial consultation is free with no obligation to proceed. If you decide to go ahead with an equity release plan our advice fee, usually 1.99% of the amount released, subject to a minimum of £1,499, is payable only on completion.
With a lifetime mortgage, the most popular form of equity release, you’ll still own your home. As with any kind of mortgage, it’s a loan secured against your home. All equity release plans we recommend have a no negative equity guarantee, which means you’ll never owe more than the value of your home.
Equity Release and Taxation
For many people approaching retirement age, equity release could be a viable option to allow them to access funds that may be tied up in their property.
Equity release and taxation are inherently linked, so you should make yourself aware of the tax implications associated with releasing equity on your property before you click on the link below and get equity release quotes.
The two main issues associated with equity release and taxation:
- If your total income including equity release exceeds your tax-free personal allowance, you will be expected to pay income tax on the difference.
- It is also possible that if your total income is higher than a certain amount, you may lose your entitlement to certain ‘age allowances’, which could increase your overall tax bill.
Following your death, your estate will be subject to the government’s inheritance tax based on its overall value. It is understandable that many people will wish to avoid this inheritance tax, so as to pass on as much of their wealth to their relatives as possible. Equity release could be a solution to this issue.
As equity release tends to decrease the value of an estate, this could therefore help you to avoid inheritance tax. The government has a certain inheritance tax benchmark, meaning that estates worth less than this will not be subject to inheritance tax.
If you are considering equity release as an option to avoid your estate being subject to inheritance tax, you should also make yourself aware of the fact that the interest paid on an equity release arrangement could make it a more expensive option. It would therefore be a good idea to carefully consider your options prior to releasing equity.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Equity release may affect your entitlement to state benefits and will reduce the value of your estate. It may involve a lifetime mortgage or home reversion plan. All content set out in this website is provided for information only and should not be considered as advice. It is strongly recommended that you seek advice of a qualified, independent financial advisor before making any decisions to take out an equity release product.
Equity Release Links
- Equity Release Benefits
- Equity Release Drawbacks
- Over 60 Equity Release
- Equity Release Advice
- Equity Release Best Buys
- Equity Release For Over 55’s
- Equity Release For Pensioners
- Equity Release How it Works
- Equity Release in Birmingham
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- Equity Release in Dorset
- Equity Release in Essex
- Equity Release in Glasgow
- Equity Release in Gloucester
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- Equity Release In London
- Equity Release In Manchester
- Equity Release In Norfolk
- Equity Release in Northern Ireland
- Equity Release In Norwich
- Equity Release In Scotland
- Equity Release In Wales
- Equity Release in York
- Equity Release and Joint Ownership
- Equity Release Lifetime Mortgage
- Equity Release Loan
- Equity Release Mortgage
- Equity Release Pros and Cons
- Equity Release Providers
- Equity Release Rates
- Equity Release Rules
- Equity Release Schemes
- Equity Release Supermarket
- Equity Release and Taxation
- Equity Release to Buy Another Property
- Home Income Plan
- Home Reversion Scheme
- How Does Equity Release Work?
- How to Release Equity
- How to release equity from your house
- Is equity release a good idea?
- Releasing Equity
- Remortgage Equity Release
- Remortgaging to release equity
- What is equity release?