Reform UK criticises Conservative inheritance tax plan

Reform UK has dismissed a potential Conservative pledge to abolish inheritance tax as a desperate attempt to win votes. The clash between the two parties has intensified as Kemi Badenoch prepares to centre her campaign on tax reductions ahead of the next general election. According to reports, the Tory leader is considering making the scrapping of the levy the centrepiece of her party conference speech next month. This would represent one of her most significant tax-cutting commitments to date, following her previous pledge to remove stamp duty on residential property transactions.

Robert Jenrick, the Reform shadow chancellor, rejected the proposal, arguing that the Conservatives had previously promised to reduce inheritance tax but failed to deliver on that promise. He stated that the party had previously taken substantial sums from families facing bereavement through death taxes. Jenrick suggested that the public would not be fooled by similar rhetoric this time. Instead, Reform is advocating for a broader reduction in income tax by increasing the tax-free personal allowance to 15,000 pounds. The party claims this measure would save 40 million people 500 pounds annually and prevent some pensioners from paying income tax on their state pensions. Jenrick pledged to resign if he failed to introduce this measure in his first budget as chancellor, stating he was willing to put his job on the line to ensure delivery.

Inheritance tax is currently charged at 40 per cent on the portion of an estate above the 325,000 pound threshold. While allowances can allow married couples or civil partners to pass on family homes to descendants before the levy applies, fewer than five per cent of estates currently pay the tax. This makes its abolition a relatively targeted benefit compared with the wider impact of Reform’s proposed personal allowance increase. A Conservative source indicated that Badenoch’s team believes Labour is weak on the economy and plans to focus heavily on tax issues ahead of the election. However, the party has not formally approved the proposal. A spokesperson confirmed that the policy platform for the conference has not been decided, although Badenoch has expressed her desire to cut inheritance tax in recent speeches. The issue has gained political prominence following changes that will bring unused pension wealth into the scope of inheritance tax from April 2027. Research from Rathbones found that inheritance tax considerations have influenced many grandparents’ decisions to fund their grandchildren’s university education.