The leader of the Conservatives has promised to scrap Stamp Duty Land Tax (SDLT) and roll back the proposed mansion tax if her party were to win the next general election.
Kemi Badenoch outlined the plans during her speech on the final day of the Conservative Party conference in Birmingham on Wednesday.
Badenoch said: “I believe that people who work hard and save should be rewarded for that effort. So, conference, this is my guarantee. No Stamp Duty when you buy your home. No Mansion Tax when you live in your home and no Inheritance Tax on your home when you pass it to your children or grandchildren.”
In a previous conference last year, the party leader stated that the party would aim to abolish stamp duty entirely on primary residences in order to “make it easier for millions to realise the dreams of home ownership”.
Timothy Douglas, head of policy and campaigns at Propertymark said the continued commitment to scrap Stamp Duty is “significant”: “Stamp Duty remains a major cost for those looking to move and can prevent people from making the move that is right for them,” he said. “However, any replacement must be properly considered and developed with the property sector to ensure it supports transactions rather than simply moving the tax burden elsewhere.”
Ahead of the party conference Badenoch described scrapping inheritance tax (IHT) as “morally right”, but any commitment would have to be “fiscally responsible.” She also said the party would also increase the current £100,000 cliff edge at which people lose up to £20,000 worth of childcare benefits, describing it as “unfair”, saying she did not want people to stop or reduce work as a result.
In her conference speech she explained abolishing IHT immediately would impact plans to create the Britannia shield defence policy, increase capacity in prisons, and cut the deficit.
Reiterating her party’s commitment to cutting the deficit she added: “Last year, I announced our Golden Economic Rule, to impose self-discipline. For every pound we save, 50 pence will go towards cutting the deficit. We have already identified over £70 billion of savings.”
Badenoch accused the Labour Party of thinking it “selfish” to pass on estates to offspring, meanwhile the Conservatives do not.
She added that a Conservative government would introduce sweeping changes to IHT, enabling estates to pass on the family home without any IHT liability, and allowing couples to each leave an additional £500,000 tax free in their estate; resulting in the number of families paying IHT falling by 50%.
The ambition, she concluded would be to abolish IHT altogether as soon as affordable.
