Britainupdated 53m ago2 min read
Kemi Badenoch Pledges To Abolish Inheritance Tax On Family Homes
Badenoch pledges to abolish inheritance tax on family homes if Conservatives win. Plan includes allowing couples to pass on an extra £1m tax-free.
11 outlets told this the same way.
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Inheritance tax pledge in Birmingham
Kemi Badenoch pledged that a future Conservative government would legislate so nobody would ever pay inheritance tax on their family home, speaking at the Conservative Party conference in Birmingham. Badenoch said couples would be able to leave an additional £1 million tax-free to their children, and she framed the plan as cutting every inheritance tax bill and reducing the number of families paying inheritance tax by more than half.
Badenoch told the conference that her ambition was to abolish inheritance tax altogether “as soon as we can afford it,” while she said she could not propose immediate abolition because of spending commitments on defence, prisons and the economy. Badenoch also used the speech to contrast her approach with Prime Minister Andy Burnham, calling him a “Paddington Bear prime minister” who was “hoping that the problems will just go away.”
Cost, thresholds, and rivals
Badenoch said the Conservatives had not found the funding to abolish inheritance tax altogether, and she cited the need to finance policies including missile defense, prisons and deficit reduction. The BBC said Badenoch pitched the Tories as the “no-nonsense party” compared to Reform UK “circus” and accused Andy Burnham of wanting to “live in the past,” while rival parties hit back over the inheritance tax proposals.
Labour Party chairwoman Bridget Phillipson said, “The Tories haven't changed,” and she argued Badenoch had prioritised the wealthiest instead of helping ordinary families struggling with the cost of social care. Reform UK economy spokesman Robert Jenrick said Badenoch had “chickened out of doing anything big” and argued Reform would give everyone a £500 tax cut by raising the tax-free personal allowance to £15,000.
What changes next
The Reuters account said Badenoch pledged to abolish inheritance tax on family homes if the Conservatives win power, and it said she would let couples pass on an additional £1 million without incurring the levy. The Reuters account also set out the current rules that Badenoch referenced, saying inheritance tax is currently 40% of an estate's value over £325,000, or above £500,000 if a home is given to a direct descendant.
“There is no escaping the fact that this would be a very expensive tax cut.”
The Money Marketing account said Badenoch stopped short of promising immediate abolition, saying it would depend on the public finances, and it quoted her: “My ambition is to abolish inheritance tax altogether, as soon as we can afford it,”. The Money Marketing account added that planned changes from April 2027 are expected to bring most unused pension funds and death benefits within the value of an estate for inheritance tax purposes, and it quoted tax and financial planning expert Shaun Moore saying, “There is no escaping the fact that this would be a very expensive tax cut.”