Kemi Badenoch Considers Abolishing Inheritance Tax

Conservative Party leader Kemi Badenoch is considering a pledge to abolish inheritance tax as a central pillar of her platform for the next general election. The proposal would eliminate the 40% levy on estates exceeding £325,000 and is estimated to cost £9 billion, a deficit the party may fund through welfare budget cuts. Badenoch may formally announce the policy at the Conservative Party conference in Birmingham next month, following her previous commitment to scrap stamp duty on homes.

The debate intensifies as 2027 regulatory changes are set to bring unused pension wealth into the scope of inheritance tax. This potential move follows Prime Minister Andy Burnham's recent announcement of a tourist tax surcharge on overnight stays starting in 2028.

Reform UK shadow chancellor Robert Jenrick dismissed the proposal as a desperate play, arguing that the Conservatives have previously failed to deliver on similar promises. Jenrick is instead proposing an increase in the tax-free personal allowance to £15,000 to provide broader income tax relief, pledging to resign if he cannot implement the measure in his first budget as chancellor.