Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a657928

Gov’t plans IHT freeze to fund £75,000 care cost cap

by Daniel Grote on Feb 11, 2013 at 07:30

Gov’t plans IHT freeze to fund £75,000 care cost cap

The government plans to freeze the inheritance tax threshold at £325,000 for three years from 2015 to fund a £75,000 cap on long-term care costs, according to reports.

The move comes despite chancellor George Osborne’s Autumn Statement pledge to raise the threshold by 1% to £329,000 for individuals, and £658,000 for couples, in 2015/16.

The care cost cap, expected to be announced today, will be implemented from 2017, although it will not apply to accommodation costs.

Under the government’s care reform plans, those with assets of up to £123,000 will qualify for some state help. Currently the limit is set at £23,250.

Health minister Jeremy Hunt (pictured) told the BBC: ‘By setting an upper limit to how much people have to pay, then it makes it possible for insurance companies to offer policies, for people to have options on their pensions, so that anything you have to pay under the cap is covered.’

Then cap is higher than the £35,000 level proposed by economist Andrew Dilnot, who was tasked by the government with producing a report into long-term care reform, after the Treasury baulked at the £2 billion annual cost of implementing those measures.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

What others are saying

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet