CGT IHT Nursing home fees and gifting

xylophone

Is there a way to reduce or avoid tax if income from drawdown goes to care home fees?

Not that I can see - income is income!

You may be thinking of an Immediate Needs Care Annuity paid direct to the care provider.

https://ukcareguide.co.uk/immediate-care-annuity/

The benefits generated from an Immediate Needs Annuity are tax free if they are paid directly to a registered care provider.

AnotherJoe

xylophone wrote: »

Not that I can see - income is income!

You may be thinking of an Immediate Needs Care Annuity paid direct to the care provider.

https://ukcareguide.co.uk/immediate-care-annuity/

The benefits generated from an Immediate Needs Annuity are tax free if they are paid directly to a registered care provider.

I was intrigued by keep pedallings comment about the money would have been taxed at 40% if it wasn't spent on care home fees. But rereading, what they meant I think was that since they had spent the inheritance down below £1m there was less tax to pay.

Keep_pedalling

AnotherJoe wrote: »

I was intrigued by keep pedallings comment about the money would have been taxed at 40% if it wasn't spent on care home fees. But rereading, what they meant I think was that since they had spent the inheritance down below £1m there was less tax to pay.

Yes that is what I meant, although hopefully we will stay healthy long into old age and run down some of those assets on more enjoyable things instead.