Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

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

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 or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter