Rachel Reeves has been blasted for “economic mismanagement” as she purportedly plots a new tax raid. The Treasury is considering plans to raise money from a levy on the sale of homes worth more than £500,000, reports suggest. The national property tax, would replace stamp duty on owner-occupied homes, it is believed. No final decision has been made, but the new charge could help build a model for local levies to replace council tax in the medium term, it is thought.
Buyers pay stamp duty under the existing framework, if they purchase property worth more than £125,000. The new tax would be paid by owner-occupiers on houses worth more than £500,000 when they sell their home, with the amount due determined by the value of the property and a rate set by the Government. It comes as a Treasury minister did not rule out hitting owners of high-value houses with capital gains tax (CGT) when they sell their family home.
The Chancellor is reported to be considering ending the current exemption from CGT for primary residences as she seeks ways to raise cash in the face of dire warnings about the state of the public finances.
Such a move would see higher-rate taxpayers pay 24% of any gain in the value of their home, while basic rate taxpayers would be hit with an 18% levy.
Torsten Bell declined to rule out hitting people selling their homes with CGT, insisting any potential changes were matters for the Chancellor and would be set out at a budget.
Asked to rule out the move, the pensions minister told broadcasters: “Working people and people’s living standards is what this Government is all about.
“We’ve seen wages rise more in the first 10 months of this Government than the first 10 years of the last Conservative government.
“But of course, as you know, questions for tax are for the budget and they’re for chancellors.”
Shadow Chancellor Sir Mel Stride claimed to the MailOnline that Labour is drawing up plans to raise taxes yet again in Ms Reeves’ Autumn Budget.
He also highlighted that the Prime Minister promised not to raise taxes on working people, but then rolled out a £25billion “Jobs Tax”, which, the Tory claimed, will leave the average working household £3,500 worse off.
Sir Mel added: “Now, after their botched welfare reforms and economic mismanagement, they are clearly gearing up to do it all over again this autumn.
“The British public simply cannot afford Labour. Only the Conservatives believe in sound money and low taxes.”
