Kemi Badenoch has pledged that a future Conservative government would end inheritance tax on the family home.
In her keynote conference speech in Birmingham, the Conservative leader said: “The next Conservative government will legislate so nobody will ever pay inheritance tax on their family home.”
She added: “On top of that, couples will be able to leave an additional £1 million tax-free, and these changes mean every inheritance tax bill will be cut, and the number of families paying inheritance tax will fall by more than half.”
Badenoch said her “ambition” was “to abolish inheritance tax altogether, as soon as we can afford it. That can only happen with a Conservative government.”
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Badenoch told delegates: “For the last few days, everybody’s been asking me about inheritance tax, so let’s talk about it. We are not abolishing inheritance tax at this conference. I know you’re disappointed. We could do it, but not if we want to keep our country safe with a Britannia Shield.”
She said abolition was also incompatible with funding “50,000 new prison places” and with cutting the deficit. “Governing is about choices, tough choices, and Conservatives will not announce a tax cut without telling you how we are going to pay for it”, she said.
“But just because I can’t give you everything you want doesn’t mean I can’t give you anything you want.”
Badenoch said inheritance tax “was supposed to be a tax on the super wealthy”, but that those people had “all gone, or they’ve moved their money offshore and avoid the tax altogether”.
She added: “Instead, it is now a tax on ordinary middle-class families in every corner of our country.”
Badenoch argued that what most people wanted to pass on to their children and grandchildren was “their family home”.
She said: “The Labour Party think it is selfish to pass on what you have earned to your children. We don’t.”
Moving to her peroration, Badenoch concluded: “My ambition is to abolish inheritance tax altogether, as soon as we can afford it. That can only happen with a Conservative government.
“I believe the people who work hard and save should be rewarded for that effort. So, conference, this is my guarantee: no stamp duty when you buy your home, no mansion tax when you live in your home, and no inheritance tax on your home when you pass it to your children or grandchildren.
“That is what the next Conservative government will deliver.”
