Kemi Badenoch Proposes Inheritance Tax and Stamp Duty Reforms

Kemi Badenoch and the Conservative Party have proposed a new inheritance tax regime that would allow married couples to pass on their entire family home, regardless of its value, and an additional £1 million in other assets without paying inheritance tax.

To further encourage movement within the property market, the proposal includes the total abolition of stamp duty. The combined tax reforms are estimated to cost taxpayers £6 billion, which would potentially eliminate approximately half of the current inheritance tax revenue.

The Centre for the Analysis of Taxation argues the policy primarily benefits the wealthiest 5% of estates. Critics suggest the plan creates perverse incentives for older homeowners to remain in large properties rather than downsizing, which could reduce the availability of family homes and hinder economic growth by limiting labor mobility in high-demand areas.