Inheritance faces £95k 'stealth tax' under LTC reforms

The government is set to impose a £95,000 "stealth tax" on inheritance to help pay for care for the elderly, according to the Sunday Times.

The report said the Treasury will freeze the amount that people can inherit free of tax, rather than raise it in line with inflation to help fund the introduction of a £75,000 cap on social care costs. The freeze will mean the IHT cap will not go up until at least 2019, leaving thousands of families worse off compared to if the threshold had increased. The effect will be doubled when two parents die, because the £325,000 inheritance tax threshold is transferable between married couples. This allows children to inherit up to £650,000 without charge. The report said the move would...