Conservative leader Kemi Badenoch told her party conference on Wednesday that if the Conservatives return to power they will abolish inheritance tax on family homes and permit couples to pass an additional £1m tax-free (about $1.3m). She said she hopes to remove inheritance tax entirely if public finances allow. Current UK rules apply a 40% rate to estates above a £325,000 nil-rate band; the main residence nil-rate band raises the threshold to £500,000 when a home is left to direct descendants.

2026-10-07

Conservative leader Kemi Badenoch told her party conference on Wednesday that if the Conservatives return to power they will abolish inheritance tax on family homes and permit couples to pass an additional £1m tax-free (about $1.3m). She said she hopes to remove inheritance tax entirely if public finances allow. Current UK rules apply a 40% rate to estates above a £325,000 nil-rate band; the main residence nil-rate band raises the threshold to £500,000 when a home is left to direct descendants. The pledge was made on the final day of the conference as the Conservatives sit third in opinion polls.