The news comes after the Chancellor dropped her plans to raise income tax on Friday, causing chaos in the bond markets.
On Saturday night, Kemi Badenoch, the Conservative leader, said a “mansion tax payable on death” was another “unjustified raid on pensioners who have done the right thing and worked hard their whole lives”.
Writing for The Telegraph, she said: “It is measures like this that don’t just kill growth, but kill the forces of aspiration and hard work that help build our economy.
“No wonder so much wealth has already fled the country. No wonder so many are reconsidering whether the UK is the right place for them and their children.”
Sir Mel Stride, the shadow chancellor, said the plans amounted to “a new death tax by the back door”, while Richard Tice, the deputy Reform UK leader, said: “Rachel Reeves promised last year to not come back with more tax rises – she lied.
“Now she’s planning an extra death tax that will hammer families when they’re grieving. It’s not only wrong but also cynical and cruel. Rachel Reeves should be cutting waste, not taxing British people into oblivion.”
