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Calben
It most cases only some of that money (and likely only a small fraction) has been taxed. Much of the value of a property will be from the (untaxed) growth of its value over time.
Consider someone who bought a house in 1980 for £25,000. Someone gets to inherit it in 2015 and it is now worth £2,500,000.
How much of that £2,500,000 has come from already taxed income? The £25,000 mortgage might have been paid off by only paying ~£40,000.
Even if someone has slowly climbed the property ladder over that time most the incremental growth would have come from house price rises and those capital gains along the way aren't taxed (assuming it's been a primary residence).