Written question asked by George Osborne (Conservative) on Monday, 25 October 2004, in the House of Commons. It was due for an answer on Wednesday, 10 November 2004. It was answered by Baroness Primarolo (Labour) on Wednesday, 10 November 2004 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what assessment he has made of the likely impact of the taxation of pre-owned assets on equity release schemes; whether the reversion scheme equity release plan will be affected by the changes made in the Finance Act 2004 to the taxation of pre-owned assets.

Answer: Mr. George Osborne: To ask the Chancellor of the Exchequer (1) what assessment he has made of the likely impact of the taxation of pre-owned assets on equity release schemes; [194291] (2) whether the reversion scheme equity release plan will be affected by the changes made in the Finance Act 2004 to the taxation of pre-owned assets. [194292] Dawn Primarolo: We will ensure that the pre-owned assets measures have no impact on the full range of bona fide equity-release schemes with arms-length providers, while continuing to bear down on schemes aimed merely at avoidance. The Inland Revenue are in discussion with equity release providers to define what provision is needed to ensure this. We will be making further announcements about the pre-owned asset regulations following the conclusion of the current consultation.

Secondary information