Over-40s will pay more tax or be compelled to insure for later life, in new plans from the UK government in a bid to solve the later life care crisis.

Proposals for over-40s to begin paying more tax are being mulled over by the Government and the Department of Health and Social Care, according to reports.

Modelled after Japan and Germany’s later life funding systems, the proposals suggest over-40s should be either taxed via payroll or take out insurance to pay for later life care – and protecting valuable assets like family homes being used to pay for care.

Nicola Hawkins, a tax, trusts and estates solicit...