29th May 2015
Labour leader candidate Andy Burham has plans to levy an additional tax on estates in death to pay for long-term care.
Burham is believed to be considering a return to a Labour idea that was floated previously for a ‘social insurance system’, that has been described by the Conservatives as a ‘death tax’.
In July 2014, Burham proposed people would pay a 15% levy on their estate on death after considering a 10% charge or a flat rate of £20,000, which would be paid on top of any inheritance tax (IHT) due.
At the time the Tories said a 15% tax would mean the average person would pay £46,000 extra on top of IHT.
A spokesman for Burnham told the Telegraph that the policy was still being decided, as was the size of the levy.
‘The idea that anybody should be wiped out financially as a result of their vulnerability is anathema to the Labour party. We will look at how we can address this but Andy Burnham is not committed to any one particular method.’