Conservative Leader Kemi Badenoch has promised to scrap the inheritance tax on family homes if her party wins the next general election.
Badenoch said the Conservatives would also allow couples to leave an additional £1 million tax-free to their children if the party is elected into government.
She made these promises in a speech she delivered at the Conservative Party conference today.
Badenoch said: “We are not abolishing inheritance tax at this conference. The government is about tough choices. The Conservatives will not announce a tax cut without telling you how we will pay for it.”
“But just because I can’t give you everything you want, doesn’t mean I can’t give you anything you want.
“Labour thinks it’s selfish to pass on what you’ve earned to your children. We don’t.
“The Conservatives have always been the party of homeownership.
“Passing your home into your family is one of the most human instincts of all. So, Congress, the next Conservative government will legislate so that no one pays inheritance tax on their family home.”
This measure received a standing ovation from party supporters.
Badenoch said the number of families paying inheritance tax would be reduced by more than half under the proposed measures, and that she would stop the tax completely once the country could afford it.
The Tories are also setting a target for stamp duty, and have pledged to scrap the tax on principal homes if re-elected.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “A strong, stable and accessible housing market is vital, especially as people continue to face pressures around affordability, supply and the cost of moving home. The announcements at the Conservative Party conference have put taxation and the cost of doing business firmly in the spotlight.
“The commitment to remove inheritance tax from the family home will also be welcomed by homeowners and families planning for the future. For many, the family home is their most important asset, so providing greater certainty around its passage will be important. Details will matter, and any changes must be clear, implementable and considered alongside the wider tax and housing policy landscape.”
