It was reported during the election campaign that Labour had drawn up secret plans to impose an inheritance tax raid on bereaved families, which Mr Hunt said could include proposals to remove the capital gains tax death uplift.

Analysis by accountancy firm RSM has now shown that this dual tax hit could result in effective tax rates of over 50pc.

If death was considered a “chargeable event” for capital gains tax purposes, then someone with a rental property that had gained £100,000 in value by the time of their death would trigger a 24pc liability, resulting in a £24,000 tax bill.

The remaining £76,000 might then be subject to inheritance tax at 40pc, or £30,400. This would bring the total tax due up to £54,400 or 54.4pc.

Over the last two years, the Government has slashed the capital gains tax allowance from £12,300 to just £3,000, making it much easier for investors to incur a liability.

Higher rate taxpayers are charged 24pc on profits from the sale of property and 20pc for other investments, while basic rate taxpayers are charged 18pc and 10pc respectively.