{"id":126595,"date":"2026-10-07T12:30:00","date_gmt":"2026-10-07T11:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=126595"},"modified":"2026-10-07T11:31:01","modified_gmt":"2026-10-07T10:31:01","slug":"inheritance-tax-could-face-major-overhaul","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/inheritance-tax-could-face-major-overhaul\/","title":{"rendered":"Inheritance Tax Could Face Major Overhaul As 40% Rate and Threshold Come Under Review"},"content":{"rendered":"\n

The Conservative leader has previously said she wants to find \u201cfiscally responsible ways\u201d to reduce the inheritance tax burden. According to the Birmingham Mail, party insiders have indicated that the options under consideration include cutting the current 40% inheritance tax<\/strong> rate or increasing the threshold at which the tax becomes payable.<\/p>\n\n\n\n

Badenoch Prepares To Set Out Inheritance Tax Plans<\/strong><\/h2>\n\n\n\n

Badenoch is due to deliver her keynote conference speech at Birmingham\u2019s ICC on Wednesday<\/strong>. Her intervention comes as inheritance tax is expected to raise \u00a315 billion a year for the Treasury by the end of the decade.<\/p>\n\n\n\n

Rather than proposing the complete abolition of the tax, Badenoch is expected to support a reduction. According to the Birmingham Mail, Conservative Party figures have suggested that she could either lower the 40% rate or increase the threshold <\/strong>before inheritance tax applies.<\/p>\n\n\n\n

Badenoch signalled her intention to examine the issue last month. In a post on X, she said she believed it was \u201cmorally wrong to punish people for doing the right thing\u201d after spending a lifetime working, saving and building up assets <\/strong>to pass on to the next generation.<\/p>\n\n\n\n

She argued that inheritance tax increasingly affects home-owning middle-class households, people who have accumulated savings <\/a>and small business owners. House price inflation, she said, had contributed to bringing more families within the scope of the tax.<\/p>\n\n\n\n

\u201cI want ordinary families to be able to build generational wealth, not just the super-rich who can do so now<\/em>,\u201d Badenoch wrote. She also stressed that the party would not make a formal announcement until it had developed what she described as a clear plan. The proposal <\/strong>would therefore represent a reduction rather than a removal of inheritance tax, with the precise approach still to be announced.<\/p>\n\n\n\n

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Reform says abolishing inheritance tax is \u201cmorally wrong\u201d. I think 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.

That\u2019s why I\u2019ve asked my team to explore\u2026 https:\/\/t.co\/ERNcYZqpnm<\/a><\/p>— Kemi Badenoch (@KemiBadenoch) September 14, 2026<\/a><\/blockquote>