Chancellor Jeremy Hunt is set to launch a capital gains tax (CGT) raid as he looks to plug a £50bn black hole in the public finances, according to reports.
Hunt is reportedly considering an increase in the headline rate of the tax paid on the sale of assets, which are investments such as shares and second properties.
The chancellor, who was parachuted into Number 11 last month following economic turmoil in the wake of the disastrous mini-budget, is also considering an increase in dividend taxes and slashing the £2,000 tax-free dividend allowance.
The Telegraph reported that cuts to CGT reliefs and allowances are most likely.
But an increase in the headline rate of the tax is also on the table due to the size of the crater in the public finances.
A CGT raid would be seen as electorally more palatable as it would place a greater burden on wealthier people as it is applied to profits on the sale or disposal of shares and second properties.
A Whitehall source said the proposal was in line with prime minister Rishi Sunak’s stated aim that "those with the broadest shoulders should be asked to bear the greatest burden".