From April 2017 the Government is introducing a new, additional tax-free allowance for people who own a home. This is called the “family home allowance”.
It will eventually be worth an additional £175,000 per person. Added to the £325,000 allowance that everyone gets, this means a new allowance for property owners of £500,000 – or £1m for couples.
This additional perk will also be transferable between married couples and civil partners, even if one partner dies before its introduction in 2017.
It will be introduced gradually over four years, with the allowance worth £100,000 in 2017-18, £125,000 in 2018-19, £150,000 in 2019-20 and £175,000 in 2020-21.