Care FeesWillsAutumn Statement 2022: Implications for Will Writers and Estate Planners

The Chancellor of the Exchequer Jeremy Hunt presented the Autumn Statement to Parliament on 17 November 2022. This included a number of important changes that will writers and estate planners should be aware of.

Inheritance Tax

Both the nil rate band and residence nil rate band were frozen are their current values of £325,000 and £175,000 respectively until April 2026. These will now be frozen at these levels for a further two years, until April 2028. The residence nil rate band taper threshold will also continue to be £2 million.

Capital Gains Tax

The Dividend Allowance for capital gains tax will be reduced from £2,000 to £1,000 from April 2023 and to £500 from April 2024. The Annual Exempt Amount will also be reduced from £12,300 to £6,000 from April 2023 and to £3000 from April 2023.

Care Cap

Changes to the funding of care were due to come into effect from October 2023. These included increasing the upper capital limit from £23,250 to £100,000 and the lower capital limit from £14,250 to £20,000 and introducing a cap to how much a person should contribute towards some of the costs of care. These changes will be delayed until October 2025.

Stamp Duty Land Tax

The increased thresholds for Stamp Duty Land Tax in September 2022 will now be temporary increases. These will remain in place until 31 March 2025.

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