Kemi Badenoch 'unleashes bombshell plans to abolish inheritance tax' in broadside against 'weak' Labour

Kemi Badenoch is set to unveil plans to scrap inheritance tax entirely if the Conservatives win the next General Election.

The Tory leader is slated to announce the plan at her party conference speech next month.

As it stands, HMRC scoops up billions of pounds in inheritance tax every year.

Hard-working Britons are slapped with a 40 per cent tax on their estates above a certain threshold when they die.

But the levy is highly controversial - as many people who inherit a family home are forced to sell up to cover the bill.

Now, amid rising speculation the Prime Minister could call an early General Election, the Tories are said to be plotting to go in hard on tax.

"Kemi's team think Labour are weak on the economy and plan to go hard on tax ahead of the election," a source told The Sun.

"Last year she said the Tories will abolish stamp duty on homes.

"This year they are looking to see if they can scrap inheritance tax if they can make the sums add up. It's all about inspiration."

The IHT threshold currently stands at the "nil-rate" band of £325,000 - though if you leave your home to your children or grandchildren, your allowance can increase by an extra £175,000, bringing your total tax-free threshold up to £500,000.

Any unused tax-free allowance can be transferred to a widow, widower or civil partner, which can double the total tax-free threshold to £1million.

But the higher allowance reduces if the total estate is worth more than £2million.

As well as an attack line on Labour, the Tories' inheritance tax plans could shape up to be a major battleground against Reform UK, which has been polling ahead of the Conservatives for more than 20 months.

Robert Jenrick, Reform's Treasury spokesman, has previously opened the door to cutting income tax instead of inheritance tax, arguing it would help more people.

"I do think you have to think, if you have some headroom and you want to deploy it, what has the greatest effect, what will help the people who are finding life toughest at the moment?" he asked at the Reform conference.

"If you were looking at income tax, there's 40 million income tax payers in this country, versus inheritance tax, where there's 36,000 estates a year.

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"I mean, it's a bold Chancellor to say I would rather privilege 36,000 families than 40 million taxpayers."

At the conference, he predicted the issue could become "a divide" between Reform and the Conservatives.

Mr Jenrick said the Tories were becoming a "regional party" which could focus on "the sectional interests of the asset rich, the older, those who have got lucky in life".

Reform, in contrast, are looking out for "the interest of everyone and the national interest", he confirmed.

A Conservative spokesman said: "We have not decided our policy platform for the conference.

"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."

In the past, including during his time as Health Secretary, Mr Burnham has called for a flat 10 per cent tax on all estates upon death.

This "death tax" would apply to every Briton's estate, including modest savings and family homes which were previously shielded from inheritance tax raids.

And with his first Budget looming, the Prime Minister has refused to rule out tax rises, saying he "won't be unrealistic" about the "challenging" state of public finances.

"I will always take a careful approach to things. I ran Greater Manchester for 10 years and we ran a very tight ship with rock solid finances," Mr Burnham said in late August.

"Nothing will change as I come into this role as Prime

"I will try to help them in whatever way I can, I have already done some things that will help them."