Govt 'care ISA' proposal snubbed by experts

Hannah Godfrey
clock • 3 min read

Government considering introduction of inheritance tax (IHT) exempt 'care ISA' to tackle the social care crisis

This weekend the Telegraph reported the Treasury has been reviewing proposals to include the care ISA in the government's upcoming social care green paper due this autumn. Currently, ISAs are taxed at death, meaning there is an incentive to spend savings rather than keep them to fund care. Government figures provided to former pensions minister Ros Altmann revealed those aged 60 and above have more than £300bn in ISA savings, with average values per pot between £34,000 and £40,000. Altmann welcomed the proposal, pointing out a care ISA system could have a number of advantages, incl...

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