What's in the Conservatives' inheritance tax plan and who benefits?
BBC Verify looks into the party's move to overhaul the tax that is levied on inherited wealth.
By BBC News
The Conservatives have proposed changes to inheritance tax that would allow more family wealth to be passed on without the levy being charged.
The plan, announced by party leader Kemi Badenoch, would abolish inheritance tax on family homes and give couples an additional £1m tax-free allowance if the Conservatives win power.
Inheritance tax is currently charged at 40% on the taxable part of an estate above the standard £325,000 threshold. The allowance can rise to £500,000 when a home is passed to a direct descendant.
Unused allowances can also be transferred between married couples and civil partners. In some circumstances, this means a couple can already pass on up to £1m without paying inheritance tax.
Ms Badenoch said the proposed changes would reduce the number of families paying the tax by more than half. She has also said she would like to abolish inheritance tax altogether when public finances allow.
The Conservatives have not yet set out the full cost of the plan or how it would be paid for. Deputy leader Alex Burghart said the party wanted to ensure any tax change was financially responsible before making further commitments.
Inheritance tax applies to fewer than 5% of estates, although the number is expected to increase. The tax raised £6.7bn in the latest year covered by the figures cited in reporting on the proposal.
The changes would mainly benefit people whose estates include higher-value homes or other assets above the existing allowances. Estates below the relevant thresholds would not face inheritance tax under the current rules either.
Further details, including the plan’s final cost and implementation timetable, have not been confirmed.