Care Home fees mean negative income but tax still has to be paid - unfairness overload!

NannaH

Because you are not paying £50-80k a year on normal living expenses - unless you CHOOSE to.
If someone has say a £250k Sipp plus State pension and has no spouse,  they will have to drawdown a minimum of £40k and they are also subsidising other, state funded care home residents.
They would pay approx. £8k-£12k in yearly tax so they would lose a year’s fees were they to live 5 years. 

By self funding they are saving the State £52k a year - you don’t think that an £8k -£12k tax break is fair?  I certainly do. 

I think a double personal allowance should come in for those paying for care - especially dementia care which doesn’t qualify for CHC.
My neighbour was paying £1500 a week for his Wife’s dementia care and she lasted 8 years,  all he has left is his house, if he needs care, the money won’t even last 2 years.    A colleagues wife had a massive stroke at 52 and is in a care home, she gets everything fully funded. 

sheramber

Where would you draw the line between someone choosing a high class care home with extras laid on and the other choosing a basic home which is much cheaper?

Why should someone get more tax relief because they choose to pay more for better surroundings or extra comforts

What about the disabled person who remains at home but has extra expense due to needing extra heating, extra electricity for hoists etc, perhaps a special diet?

Are you willing to pay more tax to subsidise some living in a  care home despite that person having capital in the form of a house that his family want to inherit so you would in fact be subsidising their inheritance?