There are various ways to fund your care homes rotherham needs. Care home fees annuities are one of the most common and convenient ways to do this. These annuities can be either immediate or deferred. The tax implications of a care home fees annuity are discussed below. You can also use a combination of both. The tax consequences of care home fees annuities depend on your individual circumstances.
Tax implications of a care home fees annuity
A care home fees annuity is a financial tool that allows you to pay for the costs of care for your loved one. These annuities have been used for several years and can escalate by up to 5% annually. Some annuities increase in line with the retail price index, increasing between one per cent and eight per cent each year. Using an annuity can also help you avoid the need to use your own capital or invest in stocks and bonds.
If you are worried about the tax implications of care home fees annuities in the UK, you should know that it is possible to use this asset to help pay for the care of a loved one. These annuities are tax-deductible and can …