HMRC told to raise Inheritance Tax threshold to £1 million

New demands have emerged to boost the HMRC Inheritance Tax threshold to £1 million. Tens of thousands of people have backed a Change.org petition urging the Labour Party Government to lift the Inheritance Tax threshold to £1 million.

Petition organiser Roberta Khan contends that Inheritance Tax and Stamp Duty constitute 'double taxation' by targeting people who have already paid decades of levies on their income, properties, pensions and savings, reports Birmingham Live.

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. 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."

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"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 people 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 favourable to single people 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."