Pension funds are set to face a significant financial impact estimated at £30 billion due to the leasehold reforms initiated by Michael Gove, the levelling up secretary. These reforms aim to overhaul Britain's centuries-old property leasehold system. In response to intensive lobbying by pension and insurance funds, a compromise has been reached where a £250 cap on ground rents will be implemented, alongside a 20-year transition period to a peppercorn rent. This decision by the Prime Minister overrules previous objections from the Treasury. Additionally, pensioners will receive 'headroom' for retirement savings, but millions will face paying more taxes.
Exclusive: In face of intensive lobbying by pension/insurance funds, Gove has won partial victory on leasehold reform PM has now overruled HMT. £250 cap on ground rents will be announced, with a 20 year* transition period to peppercorn 1/4 https://t.co/RDghosthHe https://t.co/HD0jzFlgmI
Indeed; Immediate peppercorn: £30bn. £250 cap and 20y transition to peppercorn: £30bn. Cheaper lease extensions: £30bn? No fees for management packs: £30bn? The freehold lobby's argument in a nutshell -> https://t.co/FfxBNyHExn https://t.co/H3pLsDTDrv
Pensioners to get ‘headroom’ for retirement savings but millions face paying more taxes https://t.co/I5pwOQnwQ3
Pension funds are braced for a hit worth tens of billions of pounds as Michael Gove, the levelling up secretary, tries to salvage his ambition of overhauling Britain’s centuries-old property leasehold system. Read more 🔗 https://t.co/iYMt7Z7aru
BREAKING: Pension funds brace for £30bn hit from Gove leasehold reforms Read more on this story🔗 https://t.co/iYMt7Z7aru