Rachel Reeves is drawing up plans to make selling family homes liable for capital gains in a fresh tax raid that could hit pensioners hoping to downsize, it has emerged.
In what has been dubbed a form of 'mansion tax', the Chancellor is reportedly looking to end the exemption from capital gains tax when owners of higher-value properties sell up.
This would see those on the higher rate of income tax pay 24 per cent of the value of any 'gain' they make from the increase in the value of their property, while those on the basic rate of income tax would pay 18 per cent.
According to The Times, Ms Reeves' plans would see the 'private residence relief' from capital gains currently enjoyed by homeowners scrapped for some properties.
The threshold at which the relief would end is currently being discussed within the Treasury, the newspaper added.
