// BBC UK NEWS — CRONACA
What's in the Conservatives' inheritance tax plan and who benefits?
Conservative leader Kemi Badenoch has announced she will overhaul inheritance tax if her party wins the next general election.
She told the Conservatives' annual conference that "nobody will ever pay inheritance tax on their family home" and couples will be able to leave an additional £1m tax free.
Tax experts say the party's £6bn per year estimate of the cost of the plan is reasonable, but warn the policy would primarily benefit wealthier households and could discourage older people from moving to smaller homes.
BBC Verify has looked into the details of the policy.
Under the current system, inheritance tax of 40% is paid when someone's estate - the total value of their money and property - exceeds £325,000. Anything under this amount is not taxed.
And, when a person dies, they can currently transfer this tax-free allowance to a surviving spouse or civil partner which increases the combined threshold for a couple to £650,000.
On top of this individuals can get an additional transferable allowance for a family home of £175,000 each when it is left to children or other direct descendants.
So at present most married couples can potentially leave £1m without paying inheritance tax.
The Conservative plan would increase the £325,000 threshold - the point at which you start paying the tax - to £500,000 and fully exempt a family home from inheritance tax.
At the moment an estate with a £2m house could be liable for £400,000 in inheritance tax. That would reduce to zero under the Conservatives.