The Conservative Party is considering a pledge to abolish inheritance tax if it wins the next general election. This potential policy could be a central part of Kemi Badenoch's party conference speech next month.
Reform UK's shadow chancellor, Robert Jenrick, has criticised the proposal, calling it a "desperate play". Jenrick stated that the Conservatives had previously promised to cut inheritance tax but had not delivered.
Instead, Reform UK is advocating for a broader income tax cut. Their proposal involves increasing the tax-free personal allowance to £15,000, which they claim would save 40 million people £500 annually and prevent some pensioners from paying income tax on the state pension. Jenrick has pledged to resign if he fails to introduce this measure in his first Budget as chancellor.
Inheritance tax is currently charged at 40% on the portion of an estate above the £325,000 tax-free threshold. Fewer than five per cent of estates currently pay this tax. A Conservative spokesperson confirmed that Kemi Badenoch has expressed a desire to cut taxes, including inheritance tax, but stated that the party has not yet formally decided its policy platform for the conference.