Spring Budget: ‘Death tax’ not part of social care funding plan, says Hammond

Today’s Spring Budget saw Chancellor Philip Hammond make clear he would not consider reviving the ‘death tax’ as part of a strategic overhaul on social care funding.

Related topics:  Budget
Amy Loddington
8th March 2017
shutterstock_94126492.jpg

The tax, which was proposed by the Labour party before the 2010 election, suggested a 10% levy on estates to help fund social care, and was criticised by the Conservatives in their election campaigning.

The Chancellor today said:

“The long-term challenges of sustainably funding care in older age requires a strategic approach. And the government will set out its thinking on the options for the future financing of Social Care in a Green Paper later this year.

“For the avoidance of doubt, Mr Deputy Speaker, those options do not include, and never have included, a Death Tax.”

Paul Wilson, CEO, Avalon Funeral Plans:

“Most people underestimate the cost of dying; indeed, the average funeral now costs in the region of £4,000 and is continuing to rise. Striking bereaved families with this level of tax could therefore have been the final straw for many already struggling to meet the costs, at what is a stressful and emotional time – so the fact the government has u-turned on this decision is a welcome move.

“Yes, raising the threshold from £5,000 to £50,000 would have meant many low income families would have remained exempt from paying the charges, however those with larger estates are often asset-rich, but cash-poor, meaning even the more wealthy may have found it difficult to cover the costs of a new, upfront tax, especially as it can take at least six months to release funds from an estate after death.”

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.