Labour is reportedly plotting an increase in the capital gains tax rate for share sales in the upcoming Autumn Budget.
The move, reported in The Times, forms part of chancellor Rachel Reeves’ plans to plug a £22 billion 'black hole' in public finances, which she accused the firmer Tory government of leaving behind.
The government could increase the CGT rate on share sales by several percentage points, according to The Times’ sources, while CGT paid on the sale of secondary homes is expected to remain unchanged.
The current rate is 10% CGT for basic-rate taxpayers and 20% for higher-rate taxpayers.
Rumours have been ramping up ahead of Reeves’ debut Budget on 30 October, with a BBC report earlier this week suggesting that the government is gearing up to announce a £40 billion tax raid to get public finances back in order.
Labour has pledged to leave income tax, national insurance, VAT and corporation tax unchanged, although the Institute for Fiscal Studies believes Labour “will have no choice but to do something with income tax” to achieve the party’s targets.