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Easing customers’ fears of granny tax

This year’s Budget was, as many often prove to be, a bit of a non-event although reading the tabloid headlines you would think otherwise.

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The clear winner in terms of headlines was the granny tax and if nothing else the new measures proved that no section of society is safe from the increasing demands for revenue the government is making.

But the serious message that underlies the many and varied changes to benefits and tax allowances is what perhaps is best described as the slippery slope concept.

In other words it’s not the effect the changes will have this year that matters, but more the long-term temptation to erode the value of these allowances for older clients.

If an individual’s birthday is between 1938 and 1948 the freezing of the age-related personal allowance will be a gradual erosion of the value of this benefit.

If they were born after 1948, they will not qualify. All in all a small step towards an increased emphasis on clients to look after themselves in retirement.

Whatever your political views, it’s a trend that is likely to continue and equity release takes another step forward as one way to help.

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