Funding social care
In his speech the Chancellor ruled out the introduction of a ‘death tax’ to fund social care. There had been pre-Budget rumours that such a tax would take the form of an addition of 10% to the standard inheritance tax (IHT) rate of 40%.
The government will set out its thinking on the options for the future financing of social care in a green paper later this year. A £72,000 cap on care costs was introduced under the Care Act 2014, but its original start date of April 2016 was postponed for four years. It is unclear whether the cap will now be abandoned.