The proposals are part of the Chancellor's attempts to plug holes in the nation's finances (Image: Getty)
Rachel Reeves is understood to be considering implementing a so-called "mansion tax" on high value properties as she fights to fill a ￡40 billion shortfall in the public purse. The Chancellor could use the Autumn budget to end exemption from capital gains tax on homes considered a “primary residence” under new proposals.
The plans are the subject of severe debate within the Treasury, with higher-rate taxpayers potentially in line for a levy of 24% on any profit made when selling a property, regardless of use. Meanwhile, basic-rate taxpayers could be forced to pay 18% of any gains on their property under the proposals. The tax would be applicable to all properties above a stated threshold, although where this threshold would be set is still a topic of fierce debate amongst officials.
Article continues belowADVERTISEMENT
DON'T MISS
Powered by
Rachel Reeves took your pensions, savings and inheritance. Now she's after your HOME
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Rachel Reeves warned new tax 'could ruin plans for pensioners'
Rachel Reeves eyeing one thing to keep plates spinning in her failed economic plan
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Expert warns Rachel Reeves' new property tax will hit downsizing pensioners in fresh blow
Rachel Reeves plots a shocking new tax no chancellor should even consider - it's madness
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves handed dire property tax warning over ‘wealth exodus' fears
Thousands of pensioners reclaim over ￡10,000 due to excessive tax charges on withdrawals
Tax expert tears apart Rachel Reeves' family homes raid
Workers on ￡35,000 hit by stealth tax squeeze adding up to hundreds of pounds
Farmer says one of them voting for Labour would be like 'finding rocking horse poo'
Households could face new ￡183 a month bill after October budget
DWP confirms exact date you must be born to get 2025 winter fuel payment
New inheritance tax rule change could leave families facing ￡82,000 bill
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Rachel Reeves took your pensions, savings and inheritance. Now she's after your HOME
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Rachel Reeves warned new tax 'could ruin plans for pensioners'
Rachel Reeves eyeing one thing to keep plates spinning in her failed economic plan
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Expert warns Rachel Reeves' new property tax will hit downsizing pensioners in fresh blow
Rachel Reeves plots a shocking new tax no chancellor should even consider - it's madness
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves handed dire property tax warning over ‘wealth exodus' fears
Thousands of pensioners reclaim over ￡10,000 due to excessive tax charges on withdrawals
Tax expert tears apart Rachel Reeves' family homes raid
Workers on ￡35,000 hit by stealth tax squeeze adding up to hundreds of pounds
Farmer says one of them voting for Labour would be like 'finding rocking horse poo'
Households could face new ￡183 a month bill after October budget
DWP confirms exact date you must be born to get 2025 winter fuel payment
New inheritance tax rule change could leave families facing ￡82,000 bill
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Rachel Reeves took your pensions, savings and inheritance. Now she's after your HOME
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Rachel Reeves warned new tax 'could ruin plans for pensioners'
Rachel Reeves eyeing one thing to keep plates spinning in her failed economic plan
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Expert warns Rachel Reeves' new property tax will hit downsizing pensioners in fresh blow
Rachel Reeves plots a shocking new tax no chancellor should even consider - it's madness
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves handed dire property tax warning over ‘wealth exodus' fears
Thousands of pensioners reclaim over ￡10,000 due to excessive tax charges on withdrawals
Tax expert tears apart Rachel Reeves' family homes raid
Workers on ￡35,000 hit by stealth tax squeeze adding up to hundreds of pounds
Farmer says one of them voting for Labour would be like 'finding rocking horse poo'
Households could face new ￡183 a month bill after October budget
DWP confirms exact date you must be born to get 2025 winter fuel payment
New inheritance tax rule change could leave families facing ￡82,000 bill
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Read more: Tories challenge Rachel Reeves to rule out ￡15,000 'family homes tax'
Read more: Rachel Reeves’ new ‘property tax’ torn to shreds - 'punishing Brits'
The Chancellor is expected to announce the proposals in the Autumn budget (Image: Getty)
According to analysis by the Times, a threshold of ￡1.5 million would hit around 120,000 homeowners who are higher-rate taxpayers with capital gains tax bills of ￡199,973.
Critics have warned that the move could simply see the owners of expensive properties leave their homes unoccupied instead of selling up and subjecting themselves to the tax.
Powered By
10 Sec
Eamonn Holmes fumes as energy price cap rises by 2%
Next
Stay
Aneisha Beveridge, head of research at the estate agent Hamptons told the Times: “It’s a big change that would hit long-term owners hardest and create a cliff-edge at ￡1.5 million, distorting behaviour around that point.
Sponsored
Learn More
Work, live, play and learn at One-north
Undo
“While the headline gains look substantial, they’re often the result of decades of ownership and, in some cases, house prices haven’t even kept pace with inflation.
“For households who don’t need to move, this could act as a strong disincentive to sell, dampening transactions and potentially weighing on house price growth and Treasury revenues alike.”
DON'T MISS
Powered by
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Expert warns Rachel Reeves' new property tax will hit downsizing pensioners in fresh blow
Rachel Reeves plots a shocking new tax no chancellor should even consider - it's madness
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves handed dire property tax warning over ‘wealth exodus' fears
Thousands of pensioners reclaim over ￡10,000 due to excessive tax charges on withdrawals
Tax expert tears apart Rachel Reeves' family homes raid
Workers on ￡35,000 hit by stealth tax squeeze adding up to hundreds of pounds
Farmer says one of them voting for Labour would be like 'finding rocking horse poo'
Households could face new ￡183 a month bill after October budget
DWP confirms exact date you must be born to get 2025 winter fuel payment
New inheritance tax rule change could leave families facing ￡82,000 bill
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
From grain to stage: sending powerful messagesNAC |
Learn More
Undo
Rachel Reeves took your pensions, savings and inheritance. Now she's after your HOME
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
Undo
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Undo
Rachel Reeves warned new tax 'could ruin plans for pensioners'
Rachel Reeves eyeing one thing to keep plates spinning in her failed economic plan
下午察：无印良品，中产带不动了?Lianhe Zaobao |
Undo
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Expert warns Rachel Reeves' new property tax will hit downsizing pensioners in fresh blow
Drone Captures Something No Human Is Supposed To SeeFitDib |
Undo
Rachel Reeves plots a shocking new tax no chancellor should even consider - it's madness
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Play this game for 1 minute and see why everyone is crazy about itplanetcapture.io |
Undo
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves handed dire property tax warning over ‘wealth exodus' fears
Meghan And Harry's Son Unseen PhotosFitDib |
Undo
Thousands of pensioners reclaim over ￡10,000 due to excessive tax charges on withdrawals
Tax expert tears apart Rachel Reeves' family homes raid
Click Here
Undo
Workers on ￡35,000 hit by stealth tax squeeze adding up to hundreds of pounds
Farmer says one of them voting for Labour would be like 'finding rocking horse poo'
Play this game for 3 minutes, if you own a mouseplanetcapture.io |
Undo
Households could face new ￡183 a month bill after October budget
DWP confirms exact date you must be born to get 2025 winter fuel payment
Welcome Gift Worth up to S$780HSBC |
Apply Now
New inheritance tax rule change could leave families facing ￡82,000 bill
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Rachel Reeves took your pensions, savings and inheritance. Now she's after your HOME
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Rachel Reeves warned new tax 'could ruin plans for pensioners'
Rachel Reeves eyeing one thing to keep plates spinning in her failed economic plan
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Expert warns Rachel Reeves' new property tax will hit downsizing pensioners in fresh blow
Rachel Reeves plots a shocking new tax no chancellor should even consider - it's madness
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves handed dire property tax warning over ‘wealth exodus' fears
Thousands of pensioners reclaim over ￡10,000 due to excessive tax charges on withdrawals
Enjoy up to 8% cashback on dining, shopping and entertainment, and Luggage with S$100 cashbackHSBC
Sponsored LinksSponsored Links
Overhyped Detox Product That Flatten Your Tummy? I Tried It—Worth Every Dollarnanosingaporeshop
Sponsored LinksSponsored Links
Do you have a mouse?Desert Order
Sponsored LinksSponsored Links
We Tried All The Top Collagen – Here's The Best OneNano Collagen 5+ Drink
Sponsored LinksSponsored Links
The changes would impact basic and higher-rate taxpayers severely (Image: Getty)
Alex Pugh, Financial Planner at wealth manager Saltus believes that uncertainty over the prospect of potential changes could “prompt many to reassess their finances and even reconsider their long-term commitment to the UK.”
He added: "While the principle of fairness in the tax system is important, the lack of clarity around plans for a possible wealth tax is understandably causing concern among business owners, entrepreneurs and higher earners - groups already contributing significantly to the UK economy and tax base.
“According to the latest Saltus Wealth Index, more than 45% of high net worth individuals already feel they are paying too much tax, with Inheritance Tax, higher rates of Income Tax, and Capital Gains Tax topping the list of those seen as 'unreasonably high' or as a barrier to economic growth.”
Read Next
SUBSCRIBEInvalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy