Kemi Badenoch has opened the door to cutting inheritance tax under a future Conservative government, arguing that it is morally wrong for families to be taxed twice on money they have earned.
The Conservative leader used the opening of her party's annual conference in Birmingham to signal that inheritance tax is firmly in her sights as she develops the tax programme the Conservatives will take into the next General Election.
However, Badenoch stopped short of making a formal pledge to cut or abolish the tax, insisting she would only announce tax reductions once the Conservatives could demonstrate how they would be funded.
The Conservatives have not yet committed to a specific inheritance-tax rate, threshold or abolition policy.
Badenoch opens door to inheritance-tax cuts
Asked about inheritance tax, Badenoch argued that people should be able to pass on wealth accumulated during their lives to their children and questioned taxing assets built from income which had already been taxed.
Her comments signal that inheritance-tax reductions are being considered as part of the Conservatives' developing tax platform. But Badenoch stressed that she would not make unfunded promises and said future tax cuts would have to be fiscally responsible.
No formal inheritance-tax pledge yet
The comments fall short of a commitment to abolish inheritance tax or introduce a particular reduction. No new threshold, rate or implementation date has been announced.
Instead, Badenoch has identified inheritance tax as an area where she believes there is a case for lower taxation while making future changes dependent on identifying funding.
Current inheritance-tax rules
Inheritance tax is normally charged at 40% on the part of an estate above the applicable tax-free thresholds.
The standard nil-rate band is £325,000. An additional residence nil-rate band of up to £175,000 may apply when a qualifying home is passed to direct descendants, subject to the relevant rules.
Transfers between spouses and civil partners are generally exempt, while unused allowances can in some circumstances transfer to a surviving spouse or civil partner.
Part of Badenoch's wider Conservative programme
The comments come as the Conservatives gather in Birmingham and unveil policies intended to shape their programme for the next General Election, including proposals covering childcare, student finance, prison capacity and fit notes.
Badenoch has also published The Right Way, setting out principles intended to guide a future Conservative government rather than serving as the party's final election manifesto.
Further detail would therefore be required before the Conservatives could be said to have adopted a specific inheritance-tax-cutting commitment.