Chancellor Rachel Reeves is reportedly considering upping the rate of capital gains tax to between 33% and 39%.
According to the Guardian, the hike would come as the government grapples with limited options to raise funds to fuel Budget spending plans.
Think tank the Institute for Fiscal Studies estimated the government would need to raise £25 billion for such plans, set to be revealed in the October 30 fiscal set-piece.
Currently, the tax sits at 24% on gains from residential property, 18% to 28% for interest on investments and 20% for other assets.
A Guardian-cited Whitehall source commented that “some very big tax decisions are being left until very late in the day”.
Another added the Treasury’s plans for the budget were in “complete disarray,” with a spokesperson from the department dubbing the claim “inaccurate”.