Conservative party leader Kemi Badenoch has confirmed that the party is examining ways to abolish inheritance tax, a move she believes would support "ordinary families build generational wealth." The confirmation comes as discussions surrounding political donations and tax policy intensify.
Badenoch stated she has asked her team to find "fiscally responsible ways" to address the burden of inheritance tax, which she noted primarily affects middle-class families, savers, and small business owners, rather than the extremely wealthy who can utilize trusts and tax planning.
The announcement follows a policy divide with Reform UK, whose figure Robert Jenrick suggested it would be "morally wrong" to prioritize cutting inheritance tax over assisting low earners. Badenoch countered this view, asserting that it is "morally wrong to punish people for doing the right thing – spending a lifetime working, saving, building up a business or a home to pass on to the next generation."
Badenoch also alluded to Reform UK's significant donations from cryptocurrency tycoons, suggesting that such individuals do not face typical inheritance tax challenges due to their financial holdings and international asset management.
Former Conservative leadership contender Robert Jenrick, however, reiterated his stance, arguing that in the current economic climate, priority should be given to raising the tax-free personal allowance to benefit a broader segment of the population, rather than solely aiding the wealthiest.
The potential abolition of inheritance tax is expected to be a significant announcement at the upcoming Conservative party conference in Birmingham. This follows Badenoch's previous pledge to eliminate stamp duty, a policy that garnered attention during the previous conference.