Story perspectives

Badenoch pledges abolish inheritance tax on family homes

By Drooid · Oct 8, 2026, 5:32 AM UTC · How we work

Summary

Story summary

Kemi Badenoch pledged to abolish inheritance tax on family homes if Conservatives win the next election.
She announced couples could pass an additional £1 million to children tax-free.
Conservatives estimate the reform would cost £6 billion annually and create an £8.2 billion fiscal gap, per HMRC.
Institute for Fiscal Studies says the wealthiest 1% of estates (£2.1 million+) would receive half the tax-cut benefit.

History

Historical Context

Margaret Thatcher’s government passed the Finance Act 1986, renaming the Capital Transfer Tax under the Inheritance Tax Act 1984 and setting a 40 % rate on estates over £125,000, expected to raise £2 billion annually. Since the 19th-century rise and post-1960 decline of inheritance taxes, MP Kemi Badenoch’s 2024 plan to abolish the tax on homes revives that legacy while forecasting a £6 billion loss.

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Story summary

Kemi Badenoch pledged to abolish inheritance tax on family homes if Conservatives win the next election.
She announced couples could pass an additional £1 million to children tax-free.
Conservatives estimate the reform would cost £6 billion annually and create an £8.2 billion fiscal gap, per HMRC.
Institute for Fiscal Studies says the wealthiest 1% of estates (£2.1 million+) would receive half the tax-cut benefit.

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