A woman who received a £1.4million inheritance tax bill after her parents died said she doesn't understand why people are being forced to 'pay tax twice'.
The caller was close to tears as she described how her parents "worked hard all their lives" but were effectively taxed twice.
It comes amid huge tax controversy around the Chancellor's own tax affairs and wife Akshata Murthy's non-domicile 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 everybody," she told host Rachel Reeves.
“My parents worked the whole of their lives - they paid taxes on their income on their home buying.
“I lost them both within the last five years and I got a tax bill from HMRC for £1.4million dropped 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 it all.
“All of it by selling my family home.
“Then during lockdown I got absolutely no support from the Government.
“So how is that a tax system that supports a hardworking person?”
Commonly referred to as “death taxes” inheritance tax is hugely controversial.
Many people think it's unjust as you pay tax on your earnings and assets and then a second levy if you choose to pass it on in your will.
And, as property prices continue to rise, experts fear that thousands more Britons could be caught out.
Liz Ritchie, partner at tax and advisory firm Mazars said: “We can expect to see this soar further in the coming years as thousands more homeowners are dragged into paying tax on their estates."
The caller said her parents didn’t make use of any loopholes, but there are some key things people can do to pay less IHT.
Married couples and civil partners can double their allowance to £650,000 by passing on their property to each other when one dies.
People could also set up a trust to reduce how much IHT someone has to pay.
Gifting is also considered to be one of the best ways to reduce inheritance tax as it can help mitigate tax as well as passing wealth on to loved ones.
