IHT reform sacrificed for £75,000 care cap

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Heath secretary Jeremy Hunt today confirmed widespread weekend speculation that the government would abandon its election promise of a £1m inheritance tax threshold to pay for the extra costs of looking after the elderly.

Prompted by a report prepared by economist Dilnot which recommended a cap on the amount a person would have to pay for care in their old age, the health secretary bargained with the Chancellor to agree a cap of £75,000. After an individual has spent that amount on their health care, the state would step in to look after them (but not pay for the bed and breakfast costs of a care home).

From April 2017, the Department of Health explained, those with property value and savings equivalent to £100,000 in 2010/11 prices or less will get financi...

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By smallbeancounter
20th Feb 2013 12:22

Broken IHT promises

This video by the Taxpayers Alliance lasts 1 minute 18 seconds and if you feel strongly about the broken promise to increase the IHT threshold please pass it on.


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