Colin Taylor, Managing Director of Key Retirement Solutions, specialist IFA for the equity release and retirement planning market, comments on Dawn Primarolo’s (the Paymaster General) confirmation in Parliament that Pre-Owned Asset Tax (POAT) will not affect bona fide equity-release schemes with arms-length providers:
“We are delighted with this announcement as we believe that POAT was never aimed at catching vulnerable elderly people who had chosen reversion plans to finance their retirement. As a specialist IFA in this market, we have been actively campaigning for clarification on this issue and are really pleased with this announcement.
“Internally, our advisers will now be speaking to home reversion customers to put an end to the concern caused by extensive negative speculation reported in the media. We hope that the coverage of this good news will put an end to the worry and stress that many other pensioners have also suffered recently.“
