Graeme Marshall, Chairman of the Home Reversion Board of Safe Home Income Plans (SHIP), commented:
“SHIP announces that reports in the press of a tax on income from home reversion plans may be misleading. SHIP believes that it was never the intention of the legislation to penalise elderly people who have taken out home reversion plans. SHIP is in talks with the Inland Revenue to discuss the exemption of home reversion plans from Schedule 15 of the Finance Act 2004. We are confident that the position will shortly be resolved in favour of existing and future reversion plan holders.
“SHIP feels that to tax home reversion plans would be wholly inconsistent with the government'sdecision to regulate the saleof home reversion plansunder the same umbrella as lifetime mortgages. The decision on regulation shows that the government is in favour of home reversions being marketed as a core equity release product.It is not now about to undermine this decision through enacting legislation thatspecifically disadvantagespeople who have taken out home reversion plans.”
