@blossomtoes
Inflation is beyond the control of the average person in the street. So, why should it be taxable?
The UK has experienced several peaks and troughs in property prices. Some owners ended up with negative equity.
Did the government issue tax credits to those with negative equity? No they didn’t.
The neighbour next to the house I rent out bought an identical property for £225K in 2010. They sold it for £284 in 2024. That initially looks like a profit of £59K, about £350 per month However, factor in costs such as:
Legal fees £1000
Stamp duty £2250
Interest on mortgage £36000
Upkeep £5000
Estate agents fees when sold £7000
Cost of moving £1000
So, there will not be cash in hand profit of £59K, more like less than £10K
However, inheritance tax does not take into account those cost, but merely looks at the difference between purchase and sale price.