Old age care reforms
Posted on 24 Nov 2020
The Chancellor George Osborne is to freeze inheritance tax thresholds to help fund sweeping reforms to elderly care, reports chartered accountant Harris & Co
According to the measure, the government will cap the cost of social care in England at £75,000 from 2017 – which could cost an extra £1bn a year by the end of the decade.
Inheritance tax thresholds will be frozen at £325,000 for individuals and £650,000 for couples for three years from 2015.
The announcement goes against what Osborne declared in 2007, when he said he would raise the inheritance tax threshold to £1m.
Other departmental cuts are also expected to be required to help plug the funding gap, along with other existing changes announced to pensions.
