Will the Tories scrap inheritance tax?

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Reports suggest the Conservative party is considering changes to inheritance tax (IHT). We look at how IHT works currently and how it could change.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 17 October 2023

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

Prime Minister Rishi Sunak is said to be exploring widespread reforms to inheritance tax (IHT) in a bid to shore up voter support ahead of next year’s general election.

Some of the ideas include cutting the 40% headline rate and scrapping IHT altogether.

The final decision lies with the Chancellor of the Exchequer Jeremy Hunt, who’s unlikely to announce any concrete regime changes until 2024. But here’s how some of the suggested changes could affect you.

IHT is complicated and this article isn’t personal advice. We can advise you on how to make use of tax allowances but if you need complex tax calculations, we recommend consulting an accountant or tax specialist.

IHT is normally paid at 40% on the value of your estate (property, money and possessions) that’s over the nil-rate band allowance of £325,000.

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