The Chancellor of the Exchequer, George Osborne has brought the social care spending cap forward to April 2016 to protect funding above £72,000. This will provide peace of mind to those who want to plan for their old age and leave savings to their children.
Further to the announcement in February 2013 to freeze the current nil rate band at £325,000 until April 2018, the extra revenue created by way of inheritance tax will fund the cap on reasonable care costs for older people.
The freezing of the nil rate band is expected to cause approximately 5,000 additional estates per year to become taxpaying estates, increasing the requirement to prepare and submit the required forms to HM Revenue and Customs.
Clay Shaw Thomas are able to provide assistance with completion of the relevant forms and effective estate planning in order to minimize potential inheritance tax liabilities. If you would like more information please do not hesitate to contact Andrew Knott at this office.