Headline: Conservatives Consider Abolishing Inheritance Tax

Date: 13 September 2026

Tags: UK Politics, Tax, Conservatives, Economy

Summary:

• Kemi Badenoch is reportedly considering abolishing inheritance tax if the Conservatives win the next general election.

• Badenoch could announce the proposal during her Conservative Party conference speech next month.

• A Conservative source said the party is examining whether abolition can be made financially affordable.

• Inheritance tax is currently charged at 40% on qualifying estate values above applicable tax-free thresholds.

• The standard tax-free threshold is £325,000, potentially rising to £500,000 when a home passes to direct descendants.

• Married couples and civil partners can potentially transfer unused allowances, producing a combined tax-free threshold of £1 million.

• Reform UK has suggested income tax cuts could benefit substantially more people than abolishing inheritance tax.

• Reform's Robert Jenrick said approximately 36,000 estates face inheritance tax annually, compared with 40 million income-tax payers.

• Conservatives said their conference policy platform has not been finalised, but Badenoch has previously advocated inheritance tax cuts.

• Prime Minister Andy Burnham has previously supported replacing inheritance tax with a flat 10% levy on estates.

Why this matters: Inheritance tax could become a significant dividing line between the Conservatives, Labour and Reform UK ahead of the next election.

What’s next: The Conservatives are expected to finalise their tax policies before next month’s party conference.