Headline: Conservatives Pledge to Scrap Inheritance Tax on Family Homes

Date: 7 October 2026

Tags: UK Politics, Conservatives, Tax, Economy

Summary:

• Kemi Badenoch says a Conservative government would remove family homes from inheritance tax entirely.  

• The exemption would apply to a main family home passed to children, grandchildren, fostered or adopted children.    

• The standard inheritance tax allowance would increase from £325,000 to £500,000 for individuals.

• Couples could pass on £1m in other assets tax-free, in addition to their family home.    

• Conservatives estimate the changes would cost approximately £6bn annually by 2029-30.   

• The party says spending reductions, including welfare cuts, would fund the inheritance tax changes.    

• Conservatives estimate the number of estates paying inheritance tax would fall from 52,100 to 22,000 in 2029-30.   

• Currently, fewer than 5% of deaths result in inheritance tax being paid.    

• Labour accused the Conservatives of prioritising wealthier households instead of families struggling with social care costs.   

• Badenoch also pledged to reduce the deficit and increase employment among young people.    

Why this matters: The policy would significantly change how inherited property is taxed and substantially reduce the number of estates paying inheritance tax.

What’s next: The Conservatives would need to win the next general election to implement the proposals, with their planned spending and welfare cuts likely to face further scrutiny.