Speaking on LBC radio on Wednesday, she argued her parents had already paid income tax and taxes when they bought her home, so why was she left with such a huge bill
A woman who received a £1.4million inheritance tax bill after her parents’ death said she doesn’t understand why people are being forced to “pay tax twice”.
The caller was on the verge of tears as she described how her parents “worked hard their entire lives” but were effectively double taxed.
It comes amid a major tax controversy surrounding the Chancellor’s own tax affairs and Ms Akshata Murthy’s non-resident status.
Speaking on LBC radio on Wednesday, she argued that her parents had already paid income tax and taxes when they bought their home. So why was she left with such a huge bill?
“My feeling is that taxes are there to make life easier for everyone,” she told host Rachel Reeves.
“My parents worked all their lives – they paid tax on their income when they bought a house.
“I’ve lost them both in the last five years and got a £1.4million tax bill from HMRC that was thrown through my door in a brown envelope.
“No warning, no nothing.”
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“I didn’t use a loophole – my parents didn’t use a loophole – and I paid for everything.
“All through the sale of my family home.
“Then I got absolutely no support from the government during lockdown.
“So how is this a tax system that supports a hard working person?”
Commonly referred to as “death taxes,” inheritance taxes are highly controversial.
Many consider it unfair that one pays taxes on one’s income and wealth and then a second tax when one passes it on in one’s will.
And as property prices continue to soar, experts fear thousands more Britons could be caught.
Liz Ritchie, a partner at tax and advisory firm Mazars, said: “We can expect this to continue to increase in the coming years as thousands of homeowners are forced to pay taxes on their assets.”
The caller said her parents didn’t use any loopholes, but there are some important things people can do to reduce paying IHT.
Married couples and civil partners can double their allowances to £650,000 by passing on their assets to one another in the event of death.
People could also set up a trust to reduce how much IHT someone has to pay.
Gifting is also considered one of the best ways to reduce inheritance tax, as it can help mitigate taxes and pass on wealth to loved ones.
https://www.mirror.co.uk/money/woman-tears-after-being-forced-26704359 Woman in tears after being forced to sell family home to pay £1.4million inheritance tax bill