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Govt mulls death taxes for social care funding

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The Conservative Party is reportedly considering funding changes to social care through increases on post-death taxes.

Ahead of the party’s manifesto launch next week, the idea of higher inheritance tax or other reforms is being discussed by Conservative officials, according to the Financial Times.

While Chancellor Phillip Hammond said at the Spring Budget that a “death tax” was not on the cards, a Conservative official told the paper that this related specifically to a Labour-style policy of a 10 per cent social care levy on all estates.

Inheritance tax was cut under former Chancellor George Osborne, but it is understood that Theresa May’s co-chief of staff Nick Timothy, who is writing the Conservative Party manifesto, wants to devise a set of policies that appeals more to working families.

Inheritance tax was described as being “plagued by avoidance” in a 2014 report by The King’s Fund’s independent commission on the future of health and social care in England.

One alternative that has been advocated is using state pension age as a point at which to levy a percentage charge on wealth, with payments being either by lump sum, spread out or at death.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Why don’t they just take ALL of everybody’s money and give us back what THEY think we need!!

  2. How dare people avoid legalised theft

  3. At least Dick Turpin wore a mask.

  4. WE see and hear a lot about this, but details are very sparse.

    Are we to assume that those needing care are completely bereft of any assets? OK some may only have their house. But why in that case can’t they work some sort of home reversion plan where the care home or Govt. takes a charge on the property until either the amount is paid or if the total value is exhausted then they can rely on state aid. Meanwhile any aged spouse may continue to live in the property until they die – or need care.

    All this taxation is redolent of the old example of two neighbours. One being profligate and having no assets the other who saved assiduously. Yes, I know we are supposed to be living in a Welfare State, but many are getting very hacked off at having to bail out the feckless and the spendthrifts.

  5. Harry Katz
    You plonker, the system you describe is already in existence. They will indeed take a charge on your house and allow your spouse to carry in living there until death.
    It’s just that when old people like me started to pay tax and NI, things like social care and replacement joint were on the table as benefits. We are now paying more than ever, but they now need more money for less care, and we have an ageing population.
    As for Corbyn he is stuck in the 70s and quite honestly should be shot or ignored, although he is doing a fine job for the Tories. Those with 0 hours contract are lucky to have a job, successive governments have increased the cost of employment so much. They are now unaffordable and Blairs Britain along with the idiot Brown, undereducated the masses, that’s why we now encounter fools where ever we go.

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