[UK] Over-40s could be forced to pay more tax to cover later life care [UK] Over-40s could be forced to pay more tax to cover later life care

[UK] Over-40s could be forced to pay more tax to cover later life care
31 Jul 2020

The UK government is currently considering proposals that people over the age of forty should be forced to pay more tax in order to cover the cost of care in later life. Under such plans, savers of 40+ would face higher taxes or national insurance or would be compelled to take insurance policies against costly later life care bills.

According to Guardian reporting, officials are apparently exploring how this system might work - either through a payroll tax or insurance - however, any insurance model would need to be compulsory to ensure people paid. The money raised would then pay for the support elderly people need to care for themselves at home or to cover a stay in a care home. The plans are being considered by the government’s health and social care task force and the Department of Health and Social Care. FT Adviser details the proposals and other options being explored.

The UK government is currently considering proposals that people over the age of forty should be forced to pay more tax in order to cover the cost of care in later life. Under such plans, savers of 40+ would face higher taxes or national insurance or would be compelled to take insurance policies against costly later life care bills.

According to Guardian reporting, officials are apparently exploring how this system might work - either through a payroll tax or insurance - however, any insurance model would need to be compulsory to ensure people paid. The money raised would then pay for the support elderly people need to care for themselves at home or to cover a stay in a care home. The plans are being considered by the government’s health and social care task force and the Department of Health and Social Care. FT Adviser details the proposals and other options being explored.

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