Conservative Party leader Kemi Badenoch is considering abolishing inheritance tax if the Conservatives return to power at the next UK general election, according to party sources cited by the Evening Standard.
The proposal could be unveiled as early as next month’s Conservative Party conference in Birmingham, as Badenoch seeks to rebuild momentum around the party and strengthen its tax-cutting credentials ahead of the next election.
A Tory source told the Daily Mail that Badenoch is considering the abolition of inheritance tax if the Conservatives win, but stressed that the proposal would depend on the party being able to make the finances work.
Scrapping the tax could create an estimated £9 billion gap in the UK public finances, with Conservative figures reportedly considering cuts to welfare spending as one possible way of funding the measure.
UK Inheritance Tax
Inheritance tax is currently charged at 40% on the portion of an estate above the standard tax-free threshold of £325,000. However, available allowances can allow some estates to pass on up to £1 million before inheritance tax becomes payable.
The tax affects fewer than 5% of estates but remains politically controversial. Critics argue that families can effectively face another tax on wealth accumulated during a person’s lifetime, particularly when assets such as homes are passed to children.
Supporters of inheritance tax, however, argue that it plays a role in taxing inherited wealth and preventing large estates from being transferred entirely tax-free between generations.
Badenoch’s proposed abolition would therefore represent a major tax-cutting commitment for the Conservatives and could become an important dividing line in the next election campaign. The proposal comes as the Conservative leader attempts to give her party renewed political momentum following a reshuffle of her top team.
