Politics

Conservatives pledge to scrap inheritance tax on family homes if elected

Leader Kemi Badenoch faces criticism over proposal estimated to cost around £6bn annually

Updated Oct 7, 2026 · 20:24 UTC5 reports

The short version

Conservative leader Kemi Badenoch pledged that a future Conservative government would scrap inheritance tax on family homes and allow couples to leave an extra £1m tax-free.[The Guardian · BBC News]
The Conservatives estimate the policy would cost roughly £6bn per year, claiming it would be financed through identified spending savings.[The Guardian · BBC News]
Critics, including Labour, trade unions, and Tax Justice UK, argued the plan disproportionately favors wealthy estates over ordinary families.[The Guardian]

Kemi Badenoch announced that a future Conservative government would remove inheritance tax on family homes and let couples pass on an extra £1m tax-free.[The Guardian · BBC News]
The Conservative Party projects the policy would cost about £6bn per year and would be funded by broader savings identified by the party.[The Guardian · BBC News]
Official figures show that 4.72% of UK deaths resulted in inheritance tax liabilities in 2023-24, raising approximately £7bn for the government.[BBC News]
The Institute for Fiscal Studies projected that roughly 12% of people will incur inheritance tax on their death or that of a spouse by 2032-33.[BBC News]
Reform UK suggested the inheritance tax changes would affect only 2% of homes, predominantly concentrated in London.[The Guardian]

The viability of funding the estimated £6bn annual cost depends on whether the Conservatives can achieve the tens of billions in spending cuts they claim to have identified.[The Guardian · BBC News]

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.