UK Conservative Party leader Kemi Badenoch has promised to abolish inheritance tax on family homes if her party returns to power. Speaking at the Conservative Party’s national conference in Birmingham on Tuesday, she said the proposed policy would reduce by more than half the number of households affected by the tax.
Badenoch described the next general election as a battle for the “soul of the nation” and expressed confidence in her party’s readiness to contest the election. She said a future Conservative government would ease financial pressure on working Britons and restore what she called common sense to British politics. She also praised Conservative MPs for their work in opposition and singled out Douglas Lumsden following his victory in Aberdeen South.
Inheritance tax is charged on the taxable value of a person’s estate after death. The standard rate is 40% on the portion above the applicable tax-free threshold. The usual threshold is £325,000, but it can rise to £500,000 when a qualifying main residence is passed to direct descendants. Married couples may also combine unused allowances, potentially allowing up to £1 million to pass on without inheritance tax, subject to the applicable rules.
