Residential care for the elderly
The enormous house price inflation the UK has witnessed since Labour took office has created large windfall gains for homeowners, gains which decline the more recently they purchased their house. The generation, then, that is likely to die in the next 20-30 years has been the biggest winner, and it seems Tory policy is to do anything to let them, or more accurately their children, keep hold of those gains. First we had plans for cuts in inheritance tax, at the expense of higher taxes elsewhere, and now we have suggestions of free (after a time limit) residential care for elderly people who can't look after themselves (and neither can/will their children).I can see arguments in favour of this policy, but more against it. As normal it will mean higher taxes elsewhere, i.e. mainly on people aged 20-40 today. I would suggest a compromise in which the cost can be deferred until after death, and come in the form of a special inheritance tax (which otherwise won't be levied given the tax changes).
Labels: inheritance tax, Taxation
posted by Matthew @ 4/20/2008 10:27:00 AM
Comments: 0
