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Can a partner keep the home from care fees and Inheritance Tax?

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UKPublished 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

In England, a partner living in the property as their main or only home can usually mean the house is disregarded in a care-fee financial assessment. An unmarried partner does not get the automatic Inheritance Tax spouse exemption, so the two issues need separate planning.

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For care-fee planning, first check the local authority's financial-assessment rules; for Inheritance Tax, check whether you are married or civil partners and who will inherit the qualifying residence.

Read the Care Act charging guidance on GOV.UK

A partner at home can trigger a property disregard

In England, the value of a person's main or only home is not treated the same way in every care-fee assessment. The Care Act guidance and charging regulations provide circumstances where the property can be disregarded. One important case is where a qualifying partner is still occupying the property as their main or only home.

That means a move into a care home does not automatically mean the house must be sold to pay the bill. The local authority must apply the charging rules to the actual household circumstances, including who lives in the property and whether the statutory conditions are met.

Does the rule only help married couples?

No. For care charging, the regulations include a “partner” within the qualifying-relative rules. Local authority guidance commonly describes this as a partner who remains living in the property as their main or only home. The exact facts matter, especially if the relationship has ended, the partner moves out, or the occupancy changes.

Do not transfer ownership to a partner simply because you assume that is the only way to protect the house. A transfer can create legal, tax and deprivation-of-assets issues. Get specialist advice before changing ownership.

Care-fee protection is not the same as Inheritance Tax protection

Inheritance Tax has separate rules. For 2026/27, the standard nil-rate band is £325,000 and the residence nil-rate band is £175,000, subject to its conditions. The residence nil-rate band is connected to passing a qualifying residence to direct descendants and can be tapered for larger estates.

A spouse or civil partner can benefit from the spouse/civil-partner exemption and can also potentially receive unused nil-rate bands from the first death. An unmarried cohabiting partner does not receive the automatic spouse exemption. That can make the tax outcome very different even where the care-fee outcome is broadly protected.

Joint tenants do not solve every IHT question

Owning a property jointly can simplify ownership, but it does not by itself remove the value of the deceased person's interest from the IHT calculation. What matters is the legal ownership, beneficial ownership, the will or intestacy position and the applicable exemptions and reliefs.

If a couple are unmarried, leaving the home to the survivor may avoid an immediate forced sale in some circumstances but still create an IHT exposure on the first death. A will drafted without considering the tax position can produce a very different outcome from the one the couple intended.

Other capital still matters

The home is only one part of a care-fee assessment. For 2026/27 in England, the upper capital limit remains £23,250 and the lower capital limit remains £14,250. The treatment of the home can be different from other investments and savings, and a local authority will also look at income and the detailed charging rules.

For someone moving into residential care, the personal expenses allowance for local-authority-arranged care is also a separate rule from the home disregard. The numbers change over time, so use the current local-authority circular rather than relying on old forum posts.

Do not give the home away just to avoid fees

Deliberately reducing assets to avoid care charges can be treated as deprivation of assets. An authority can, depending on the facts, treat the person as still possessing the asset for assessment purposes. A property transfer can also have consequences for IHT, capital gains, housing security and relationship rights.

That is why a “put the house in my partner’s name” strategy is not a simple care-fee workaround. The safer route is to understand the statutory disregard first.

What if the owner lacks capacity?

A registered property-and-financial-affairs lasting power of attorney can allow an attorney to manage bank accounts, property, tax and bills within the authority granted by the donor. GOV.UK says an attorney can use the donor's money to look after the donor's home and day-to-day needs.

An attorney cannot simply treat the donor's house as the attorney's own. Decisions must be made within the LPA's authority and in the donor's best interests. A planned property transfer needs specialist legal advice.

A sensible checklist for a couple

Confirm whether you are married, civil partners or cohabiting.
Check who legally and beneficially owns the home.
Ask the local authority how it would treat the property if one person entered care.
Review the will and whether the residence is intended for direct descendants.
Get advice before gifting or transferring the property.

Citizens Advice, Age UK and a specialist solicitor can help with different parts of the problem. The care-fee rules and IHT rules are related only in the sense that they both affect the family balance sheet; they are not the same test.

Worked example

Illustrative IHT example: suppose a UK estate contains a qualifying residence worth £500,000 and other assets worth £400,000, giving a simple gross estate of £900,000 before debts, exemptions and other adjustments.

Standard nil-rate band: £325,000.
Illustrative residence nil-rate band: £175,000.
Combined illustrative bands: £325,000 + £175,000 = £500,000.
Simple amount above those bands: £900,000 − £500,000 = £400,000.

This does not mean £160,000 of IHT is automatically due. The example ignores debts, gifts, exemptions, transfers between spouses or civil partners, unused allowances and the direct-descendant conditions for the residence nil-rate band. It is simply a way to show why the family relationship and the destination of the home can matter.

The example does not calculate a real tax bill. The purpose is to show why the residence nil-rate band cannot simply be added to a care-fee disregard. The legal tests, ownership, beneficiaries, gifts and estate size all need separate consideration.

Can my unmarried partner keep the house if I go into care?#

Often the property can be disregarded from your care-fee financial assessment when a qualifying partner remains living there as their main or only home. The care rules are separate from Inheritance Tax, so do not assume the same protection applies after death.

Does living together give us the same IHT benefit as marriage?#

No. An unmarried partner does not automatically receive the spouse or civil-partner Inheritance Tax exemption. The estate may instead need to use the ordinary nil-rate band and, where conditions are met, the residence nil-rate band or other reliefs. The care assessment and IHT assessment should be treated as separate legal questions.

Can I put my house into my partner’s name to avoid care fees?#

That is risky. A deliberate transfer to reduce assets for care charging can be treated as deprivation of assets. It can also create tax and legal problems. First establish whether the partner already qualifies for a property disregard under the care-charging rules.

Is a jointly owned house protected from care fees?#

Joint ownership does not automatically make the whole property exempt from assessment. The local authority applies the charging rules to the person’s beneficial interest and any statutory property disregard. A partner living there can be an important factor. The care assessment and IHT assessment should be treated as separate legal questions.

What happens to the house for IHT if my partner is not my spouse?#

The automatic spouse/civil-partner exemption does not apply. The estate may still have nil-rate bands or other reliefs, but leaving a qualifying home to an unmarried partner does not itself create the residence nil-rate band because that relief has its own direct-descendant conditions.

Can an attorney sell a parent’s house to pay care fees?#

A property-and-financial-affairs attorney can manage property within the LPA authority, but must act for the donor rather than for themselves. A sale or transfer should be handled carefully, particularly where family members or care costs are involved. The care assessment and IHT assessment should be treated as separate legal questions.

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Sources

Figures were checked against these sources before publication. If a rule changes, we update the page and show the new date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.