You may have seen the headlines suggesting that Inheritance Tax on the family home could be scrapped. If your Will is a few years old, it's tempting to think there's no point reviewing it now and that it makes sense to wait and see what happens. In this article we'll look at what was actually announced, what the rules are today, and the one detail in a Will that decides whether your family gets the home allowance at all.
What Was Announced
On 7 October 2026, at their party conference, the Conservatives announced that a future Conservative government would abolish Inheritance Tax on a main home passed to direct descendants and raise the individual tax-free threshold to £500,000, replacing today's separate allowances. They described it as a first step and said they would legislate to bring it in.
We're not here to say whether that's a good policy or a bad one. What matters for your planning is that it's a pledge, not the law. There's no date for it, it depends on the outcome of a future general election, and Inheritance Tax is always worked out under the rules in force on the day someone dies.
What the Residence Nil Rate Band Gives You Today
Under today's rules there is already an additional allowance for your home, known as the Residence Nil Rate Band. It applies when your home, or your share of it, goes to your direct descendants, meaning your children, grandchildren and other lineal descendants. We explain how it works in our guide to whether your Will protects your home allowance.
What most people don't know is the timing. HMRC's guidance says that inheriting the home only counts if the direct descendants become entitled to it when the person dies. Not later. At the moment of death.
The home allowance depends on who gets your home, and when.
Meet Jean
Jean is a widow with two children and four grandchildren. Years ago, she made a Will leaving her house to her grandchildren, but only when they reach twenty-five. She didn't want them receiving a large sum too young, which is a completely understandable wish.
HMRC's guidance uses almost exactly this example. Where a Will says grandchildren must reach a certain age before they can inherit the home, the property is held in a trust and the Residence Nil Rate Band does not apply, because the grandchildren don't inherit the home at the time their grandparent dies. On an estate like Jean's, losing that allowance can mean tens of thousands of pounds more in Inheritance Tax.
Then Jean sees the headline and decides to leave her Will alone. If something happens to her before anything changes, her estate is dealt with under today's rules, with a Will that misses the home allowance completely. And there is no detail yet on how the pledge would treat a Will like hers.
So, Should You Wait?
Most Wills are fine, but the only way to know is to look. Check who your home goes to under your Will, and whether they become entitled to it when you die or at some later point. If you want to protect younger grandchildren, there are ways of doing that properly, and the right approach depends on your family, which is why it's a conversation for a proper review rather than a reaction to a headline.
Getting your Will right works under today's rules, and it doesn't depend on the outcome of any election.
This article is general information about UK estate planning and does not constitute legal or tax advice. Everyone's circumstances are unique, so if you'd like to talk through yours, we'd love to help.
If you'd like us to look over your Will and how your home would pass, you can book a free, no-obligation 15-minute call with me here.
See our YouTube video on this topic: https://youtu.be/TsGB_8IvXFI
