Labour’s Burnham considering ‘death tax’ to pay for elderly care

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.’



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