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.