- See more Daily Mail on Google - save us as a Preferred Source
Inheritance tax is likely to be abolished if Kemi Badenoch becomes Prime Minister, party sources have told the Mail on Sunday.
asserted
sources → see → Sunday
The move – which the sources said will happen if 'the sums can be made to add up' – would strike a powerful contrast with the array of new taxes being imposed by Labour.
asserted
sums → say → Labour
Last week Prime Minister Andy Burnham announced plans to impose a £1.6billion 'tourist tax', which would hit Britons holidaying in the UK with a 5 per cent surcharge – the latest in a raft of rises to tax and National Insurance since Labour's 2024 general election victory.
asserted
which → announce → victory
Inheritance tax is charged at 40 per cent on estates over the standard tax-free threshold of £325,000, although the exempted amount can rise to £1million when the main home is passed on and married couples transfer their allowances between themselves.
asserted
couples → charge → themselves
Scrapping IHT would cost an estimated £9billion, with the funds most likely to be found from cutting the spiralling welfare bill.
asserted
funds → scrap → bill
The move could be announced at the Tory party conference in Birmingham next month, although sources close to Ms Badenoch said they had 'not decided our policy platform yet'.
uncertain
they → announce → platform
It would have echoes of George Osborne's announcement at the Tories' 2007 party conference that a future Conservative government would raise the IHT threshold from £300,000 to £1million.
asserted
government → have → 1million
Sources have said inheritance tax is likely to be abolished if Kemi Badenoch (pictured on September 11, 2026) becomes Prime Minister
Burnham (pictured on September 10, 2026) announced plans to impose a £1.6billion 'tourist tax' that means Britons holidaying in the UK would be left with a 5 per cent surcharge
The surge in support that followed heavily influenced Gordon Brown's decision to 'bottle' a snap election that autumn.
Given the Tory Party is currently unprepared for an election, many of Ms Badenoch's aides hope that such a policy would deter Mr Burnham from calling an early election himself.
Last year, Mrs Badenoch successfully kept her plans to axe stamp duty secret ahead of her conference announcement – a move credited with shoring up her leadership.
Senior sources in Mrs Badenoch's office have told the MoS they want conference to create a 'sense of momentum' following on from a successful Tory shadow ministerial re-shuffle.
asserted
conference → say → shuffle
Mrs Badenoch has already said abolishing the 'death tax' is 'high on my list' and last week she said she commissioned internal research to see whether it is affordable – because 'we are the party of fiscal responsibility'.
asserted
we → say → responsibility
A source said: 'Abolition is high on Kemi's policy wish-list, but will only happen if we can make the sums add up'.
asserted
sums → say → list
Her new Shadow Chancellor, Andrew Griffith, has also made no secret that he hates the levy.
asserted
he → make → levy
Last year he told the TaxPayers' Alliance: 'I was asked at my selection, what's the single tax, if you ever had a chance to scrap?
asserted
you → tell → chance
And in August, four days before his promotion, he said Britain can 'learn from' Sweden after they scrapped inheritance tax.
asserted
they → say → tax
A poll for the Adam Smith Institute showed significant support for cutting IHT.
asserted
poll → show → IHT
It showed 45 per cent of Britons oppose inheritance tax and only 25 per cent support it in its current form.
asserted
cent → show → form
John O'Connell, chief executive at the TaxPayers' Alliance said: 'Inheritance tax is one of the most unfair and hated taxes on the books, punishing families for saving, investing and building something to pass on.
asserted
tax → say → something
Scrapping it would send a powerful signal that Britain wants to reward aspiration rather than tax people again after death.'
asserted
Britain → scrap → death
And James Lawson, chairman of the Adam Smith Institute, called for 'abolition'.
asserted
Lawson → call → abolition
He said: 'We welcome this bold and growth-boosting announcement.
asserted
We → say → announcement
The Adam Smith Institute has made the case against the death tax for the best part of 50 years.
asserted
Institute → make → years
'Inheritance tax does a great deal of damage for very little money.
asserted
tax → do → money
It raises less than 1 per cent of the total tax take.
asserted
It → raise → take
It forces panic sales of family businesses, farms and homes.
asserted
It → force → businesses
It falls hardest on family firms, whose owners cannot simply sell shares to pay the bill.
asserted
owners → fall → bill
And it taxes income that has already been taxed.
asserted
that → tax → income
The British public have never accepted it.
asserted
public → accept → it
A Conservative spokesman said: 'We have not decided our policy platform for conference and anyone claiming they know what we're announcing clearly has nothing to do with the planning.
'
asserted
we → say → planning
Kemi has made no secret of her desire to cut taxes, singling out inheritance tax as one of those taxes she wants to cut in a speech last week.
asserted
she → make → speech
'But, unlike Reform, the Conservatives do not announce policies unless they are fully costed, backed up by specific savings, and in line with our Golden Economic Rule.'
asserted
they → announce → Rule
The Aporia
