Reeves considering levy on expensive homes to help plug hole in finances

Rachel Reeves is considering plans for a tax on expensive homes in an effort to raise billions of pounds and close a large hole in the public finances.

- Aletha Adu

The chancellor has ruled out increases to income tax, VAT and national insurance, but Treasury officials have been tasked with exploring other options to boost revenue.

One proposal being considered is to remove the longstanding capital gains tax exemption on primary residences valued at more than £1.5m, according to the Times. Homeowners selling properties above that level would be subject to a capital gains tax at 18% for basic-rate taxpayers and 24% for higher taxpayers.

The proposals are set out to raise between £30bn and £40bn to stabilise the public finances while allowing Reeves to stick to her election pledge not to raise the three biggest taxes on income and consumption.

When asked about the report, a Treasury source said they would not comment on "speculation".