Tens of thousands people have signed a Change.org petition calling on the Laobur Party Government to raise the Inheritance Tax threshold to £1 million.
HMRC ordered to increase Inheritance Tax threshold to £1 million
There are new calls to increase the HMRC Inheritance Tax threshold to £1 million. Tens of thousands people have signed a Change.org petition calling on the Laobur Party Government to raise the Inheritance Tax threshold to £1 million.
Petition starter Roberta Khan argues that Inheritance Tax and Stamp Duty amount to ‘double taxation’ by taking from people who have already paid a lifetime of taxes on their earnings, homes, pensions and savings.
Ms Khan said: “My partner died in 2012, leaving me and our two children. His share of the house was passed to our children as tenants in common, which unfortunately means they will face capital gains tax when selling it.
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“To alleviate this issue, they had to gift his share back to me. This decision, however, raises another problem as it puts my estate over the threshold for inheritance tax without considering the pension pot.
“Being a single mother, this taxation issue hits home harder. When my partner passed away, I received no government support since we were not married. The lack of recognition as a marital spouse meant no widow’s pension came my way, nor did his personal pensions acknowledge me.
“The government’s proposal to include pension pots in inheritance tax calculations threatens to burden families like mine further. For individuals who are single, unmarried, or widowed, this could mean an insurmountable financial strain. Without changes, my children would inherit a tax nightmare instead of the stability and security their father and I worked so hard to provide.
“The current system already creates enough financial distress. A single person’s property worth over £500,000 and a reasonable pension pot should not automatically translate into such a hefty tax burden upon death.
“I urge the government to reconsider these proposed changes. It’s essential to keep pension pots separate from inheritance tax calculations. Moreover, inheritance tax should be more favorable to single individuals and unmarried widows. This change is vital not only for me and my family but for countless others who face similar circumstances.
“Together, we can influence change by raising our voices to the authorities. I urge you to sign this petition to help prevent pension pots from contributing further to the inheritance tax crisis. Sign now to protect your family’s future from unnecessary financial hardships.”