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New Social Care Regs

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So my understanding is that if the citizen is already in a Care scheme or starts to incur Care costs before October 2023; they do not qualify for the £86k Cap Contribution.Even if they do qualify only actual Care costs count.I believe the BBC calculated that it would be three years from October 2023 before the Cap would apply.It does seem to have the dead hand of Rishi all over it.Basically the new contribution will be kicking in for some 4 1/2 years;before claims start to be made.Even by then a raft of potential claimants will be dead within those three years. No wonder Rishi gave in to Boris s flag ship proposals ,as it wasn't going to cost the Exchequer very much.

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By ireallyshouldknowthisbut
08th Sep 2021 12:49

its only care costs too. if you are paying £1300 a week as we are for a family member I imagine about £300 of that is care, £1k will be 'food & accommodation'.

So its almost a meaningless thing. Not many people live very long in a residential care home.

They should have gone with 10% on IHT for all assets £100k to £1million. No-one inheriting £900k is going to sniff at a £80k tax bill.

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Replying to ireallyshouldknowthisbut:
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By Michael Davies
08th Sep 2021 13:16

A couple of mega rich Tories would object to extra IHT.That s why Rishi won’t go there.

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By Mr_awol
08th Sep 2021 15:49

Under Ireallyshould's proposal though (assuming i read it right) mega-rich Tories wouldn't be affected. I read it that he was suggesting IHT on all inheritance over £100k, with a 'starting rate' of 10% for the masses. So the average estate(which i understand to be about £140k in the UK) might pay £4k in IHT.

It would bring IHT into play for a lot of people who don't currently have to worry about such stuff, so kind of a tax on the poor, but as it would have a low rate and a modest ceiling it would probably be defendable. Let's face it, 40% tax on capital is obscenely high but so is being able to pass down £1m tax free. My worry about a sensible rate at lower estate values would be that it would soon creep up, to say 20% or so.

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By Mr_awol
08th Sep 2021 13:15

Michael Davies wrote:

Basically the new contribution will be kicking in for some 4 1/2 years;before claims start to be made.Even by then a raft of potential claimants will be dead within those three years.

perhaps (i wont comment on, or even consider the accuracy of that suggestion) but (because) i suspect there will be very few people, if any, that will pay into the new scheme and need care before the cap comes in.

So, although the funds are supposed to be 'ring fenced' (ha) and therefore you might expect some alignment on dates, as long as the surplus is c/fwd it is very unlikely that anyone who misses out on the cap will have paid into the pot anyway*

* Unless of course you consider the consequential losses by the children of the elderly who may end up funding the costs charged to their parent(s), either directly or via reduced inheritance

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