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Labour eyes 15 per cent ‘death tax’

Labour is considering a 15 per cent “death tax” to pay for long-term care costs, The Telegraph reports.

Ahead of the 2010 election, Labour considered imposing a 10 per cent tax on people’s estates when they die but  ditched the plans following a barrage of criticism.

However, Labour shadow health secretary Andy Burnham is reported to have told delegates at the Fabians Summer Conference that he is in favour of a new estates tax and that Labour is holding “internal party discussions” on the proposals.

He added: “There is a debate to be had on whether that is acceptable to the public.”

The Care Bill received royal assent in May and brings in a £72,000 lifetime cap on social care costs.

However, hotel and accomodation costs will not count towards the cap.


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  1. So we are back to tax and spend eh? Like IHT this will end up being a tax that middle england pays the bulk of whilst the poor will be exempt and the wealth will plan around it. It seems old Labour or new labour is just plain old labour and lacking some original thinking. Shame as we need effective opposition.

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