Woman in tears at £1.4m Inheritance Tax bill from HMRC ‘Parents have already paid taxes!’

LBC caller emotional over lack of support paying parent's taxes

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

The caller was close to tears as she described how her parents “worked hard all their lives” but were effectively taxed twice. Speaking on LBC radio earlier today 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?

Speaking to Rachel Reeves on LBC earlier today, the caller said: “My feeling is that taxes are there to make life easier for everybody.

“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.”

“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?”

DON’T MISS:
PIP claimants urged to claim 10 other freebies that could save £1000s [ALERT]
State pension to rise £700 as triple lock is back – now fight for it [UPDATE]
Halifax offers customers £125 plus 15% cashback – ‘excellent’ [INSIGHT]

Commonly referred to as “death taxes” inheritance tax is one of Britons’ most hated taxes.

Many people think it’s unfair as people pay taxes throughout their lives only to be charged again when they die.

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 IHT as it can help mitigate tax as well as passing wealth on to loved ones.

What is happening where you live? Find out by adding your postcode or visit InYourArea

10 ways people could pay less inheritance tax:

  • Talk to parents or grandparents about putting the property into trust
  • Make sure they know about Business Owner Exemptions
  • Donate a part of it (above the threshold) to charity
  • Gift up to £3,000 to family members and friends tax free
  • Give away assets seven years before they die? Encourage them to spend it well before they die
  • Make the most of wedding gift allowances (up to £5,000)
  • Buy a funeral plan
  • Spend it
  • Be mindful of inheritance tax thresholds
  • Speak to an independent financial adviser.

Source: Read Full Article