Conservative plans to reduce taxes on homes and property transactions have been met with approval from property professionals. Kemi Badenoch, in her keynote speech at the Conservative Party conference, pledged significant changes to inheritance tax (IHT) and stamp duty.
Under the proposals, a future Conservative government would exempt family homes from IHT, and couples could leave an additional £1m tax-free. Ms Badenoch also expressed an ambition to abolish inheritance tax entirely, stating, “My ambition is to abolish inheritance tax altogether, as soon as we can afford it.” The Conservatives estimate these IHT reforms would cost approximately £6bn annually.
Propertymark welcomed the proposals, including the commitment to scrap stamp duty on primary homes, which its head of policy and campaigns, Timothy Douglas, described as “significant.” However, Mr Douglas cautioned that the government would need to carefully consider any replacement tax and work with the property industry to ensure reforms support transactions rather than shifting the tax burden.
Trevor Abrahmsohn, managing director of Glentree International, also supported the proposals, calling the pledge to scrap stamp duty on primary homes “very welcome.” He argued that high stamp duty rates have hindered the housing market. Mr Abrahmsohn questioned how the tax cuts would be funded, stressing the importance of proper costing to avoid unsettling bond markets.