Social care: Inheritance tax freeze expected

Thousands more people will have to pay inheritance tax to help fund long-awaited social care reforms in England, ministers will announce on Monday.

The inheritance tax threshold is to be frozen at £325,000 for individuals and £650,000 for couples for three years from 2015.

That will help to fund plans including an expected cap of £75,000 on the costs people in England have to pay for care.

Campaigners say higher taxes have been introduced "by the back door"

http://www.bbc.co.uk/news/uk-politics-21399751

Social care cap 'to be set at £75,000'

Elderly people in England will not have to pay more than £75,000 for long-term social care after 2017, the health secretary is expected to say on Monday.

The state would pay the cost of any care above that figure, which does not include food and accommodation costs.

The figure is much higher than that recommended by the Dilnot report, which said any cap should be set at £35,000.

The BBC also understands the threshold for means-tested support will rise from £23,000 to £110,000.

http://www.bbc.co.uk/news/uk-politics-21394998

Expenditure on long-term social care will reduce the amount subject to inheritance tax.