Kemi Badenoch considers abolishing inheritance tax

Conservative Party leader Kemi Badenoch is reportedly considering a proposal to abolish inheritance tax if the Conservatives win the next general election. The plan may be officially unveiled during the party conference in Birmingham next month.

Inheritance tax is currently levied at 40 per cent on estates exceeding certain thresholds. While the nil-rate band is £325,000, allowances for residential property and transfers to spouses can increase the tax-free threshold to as much as £1 million. The tax remains a contentious political issue, with critics arguing it unfairly impacts families attempting to pass on property and wealth.

The potential policy shift serves as a strategic move against the Labour government and aims to differentiate the Conservatives from Reform UK. Conservative sources indicate the feasibility of the plan depends on whether the economic math can be made to work.