Inheritance tax: What's in the Conservatives' plan and who benefits?
Key takeaway
Conservative leader Kemi Badenoch proposes raising UK inheritance tax threshold from £325k to £500k and full family home exemption, costing ~£6bn annually
- Step 1 · The triggerConservative policy announcement raises IHT threshold and exempts family homes, removing tax disincentive on holding property until death
- Step 2 · Knock-onelderly homeowners in high-value areas defer downsizing, reducing housing supply turnover in London/South-East
- Step 3 · Knock-onyounger workers face tighter housing supply and higher entry prices, reducing labour mobility into the region
- Step 4 · Knock-onSMEs dependent on property transactions see volume pressure; estate planning SMEs see demand rise from complexity
- Step 5 · Reaches youthe £6bn fiscal cost pressures future governments to raise other taxes or cut spending, landing on SME cost lines
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: bbc.co.uk
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