A Telegraph reader has appealed for help over how to avoid inheritance tax on his two Alpine chalets after Labour made changes to how inherited pensions are taxed.
Chris Rotsey expects to receive a healthy return on the sale of his two ski chalets in the Alps when he sells them within the next four years.
But the proceeds have left him with a conundrum of where the cash should go.
Talking to the Telegraph, he said: “I only paid about £100,000 for the two of them in the 80s, so when I come to sell there will be a net gain of around £450,000.
“I’m wondering what to do with that money, as I originally planned on putting it into my Sipp to shield it somewhat from inheritance tax. But Labour’s tax grab means that this will now be subject to double taxation.”
Rachel Reeves will bring pensions into the scope of inheritance tax from April 2027 – a tax trap which Rotsey is keen to swerve.
“I have a deep loathing of inheritance tax and I want to minimise it for my four kids,” he said.
“So I’m thinking of buying a house with the money instead, or should I put it in a trust fund?”
People have been quick to offer advice on social media, with one person suggesting he might cut down on avocado toast to make up the shortfall and others suggesting he might want to avoid trips to Pret a Manger.
In the parlance of Annie, it’s a hard knock life!
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