Kemi Badenoch will ‘abolish inheritance tax’ if she wins next electionThe Tories would potentially look at cutting the welfare bill to pay for the Inheritance Tax scrap, sources claimConservative Party leader Kemi Badenoch PA WireMegan Howe, News Reporter1 minute ago
COMMENTS
Kemi Badenoch is likely to abolish inheritance tax if the Conservatives win the next general election, according to party sources.
The proposal could be unveiled as early as next month’s Conservative Party conference in Birmingham, as Badenoch seeks to build momentum ahead of the next election, sources claim.
It comes as Prime Minister Andy Burnham recently announced plans to give regional mayors across England the power to introduce an uncapped “tourist tax” on overnight stays from spring 2028.
Under the Overnight Visitor Levy Bill, local authorities would be able to charge visitors a percentage of their total accommodation bill, covering stays in hotels, bed and breakfasts, Airbnbs and campsites.
In London, officials are yet to make a decision on how the scheme will work, but it is understood the charge will be no higher than 5%.
The prospect of scrapping inheritance tax would mark a significant tax-cutting commitment from the Tory party.
Inheritance tax is generally charged at 40 per cent on the portion of an estate above the tax-free threshold of £325,000. However, allowances can mean some estates pass on as much as £1million before inheritance tax becomes due.
Conservative Party leader Kemi Badenoch during a visit to see the Bayeux Tapestry PA
Although fewer than five per cent of estates are affected by the levy, inheritance tax has proved a politically contentious subject in the last year.
Critics argue families are effectively being taxed twice on money they have already earned, while others say it unfairly hits parents who want to pass their wealth and property on to their children.
But the controversial tax could be on the chopping block if the Conservatives return to power at the next election.
Read More
Saturday Night Live UK returns with skits mocking Harry, Meghan and Andy Burnham
Trump continues Irish visit at golf tournament
Donald Trump turns focus to golf after sparking row with Irish unity remarks
Choose the right education path for your child
A Tory source told the Daily Mail that Badenoch is considering scrapping inheritance tax if she makes it to Downing Street, provided the “sums can be made to add up”.
The major tax-cutting pledge could be announced at the Conservative Party conference in Birmingham next month.
Scrapping inheritance tax would leave a roughly £9billion hole in the public finances, according to the Mail, with the Tories potentially looking to the welfare budget to help pay for the move.
Senior figures in Badenoch’s team are said to want the conference to create a “sense of momentum” after the Conservative leader reshuffled her top team earlier this month.
The shake-up comes as Badenoch gears up for the political battle with Burnham ahead of the next general election.
Ms Badenoch brought in Andrew Griffith to replace Sir Mel Stride as the Chancellor’s opposite number and made Alex Burghart her deputy leader, among others.
Among the other opposition changes are Harriett Baldwin, a former Treasury select committee chief, who has now become shadow paymaster general as well as taking on the new post of shadow minister for the taxpayer.
MORE ABOUT