The Government is to impose a £95,000 “stealth tax” on inheritance to help pay for care for the elderly, according to a newspaper.
The Treasury will freeze the amount that people can inherit tax free, rather than raise it in line with inflation, The Sunday Times reports (£).
The chancellor is reported to be about to backtrack on a promise to increase the amount in two years time.
But he has decided it will not go up until at least 2019, leaving thousands of families £95,000 worse off than if the tax free allowance had risen, the paper says.
The move is anticipated to haul 5,000 people into paying inheritance tax, and would contribute about £1bn over the next five years towards the cost of care home bills for the elderly.