Inheritance tax rises to pay for elderly care...

[dutchman]

Thousands more people are likely to be hit with inheritance tax to pay for an extension in state support for elderly care, under new plans by the coalition.

The coalition is tomorrow expected to announce a three-year extension of the freeze in the inheritance tax threshold in a move that could affect 5,000 people.

Anybody bequeathing more than £325,000, or £650,000 for couples, has to pay 40 per cent tax on anything over those levels, which have not been raised since April 2009 despite inflation.

The move, extending the freeze to 2018, is intended to cover the £1bn cost of introducing a cap on the total amount anybody has to pay on social care.

The expected £75,000 cap is more than twice as high as the £35,000 limit suggested by the independent Dilnot Commission appointed by Prime Minister David Cameron to make recommendations on the highly-fraught issue.
Large rise in means-tested limits

Alongside the cap, Health Secretary Jeremy Hunt is to announce a large rise in the assets threshold beneath which people receive means-tested support meeting care bills.

Currently £23,250, that is set to rise to £123,000.

[dutchman]

Alongside the cap, Health Secretary Jeremy Hunt is to announce a large rise in the assets threshold beneath which people receive means-tested support meeting care bills.

Currently £23,250, that is set to rise to £123,000.

Not entirely true as any savings over £14,000 will still be means tested