‘Labour need to come clean on whether family homes tax is next on list’

FAMILIES face a £15,000 tax bill as Rachel Reeves mulls a fresh property sales levy ahead of the Budget, the Tories have claimed.

- By Christian Calgie Senior Political Correspondent

The Chancellor is reportedly considering replacing stamp duty with a tax applied when a property is sold, sparking fears that she is coming for “the family home”.

Shadow Chancellor Mel Stride has challenged her to rule out removing private residence relief, which exempts owners from capital gains tax when they sell their primary home.

Tory analysis claims that removing it would add £14,640 to the cost of selling - and the party has branded it Labour's Family Homes Tax.

In dearer areas the sum could top £30,000, acting as a disincentive to selling and slowing the homes market.

Mr Stride said: “Labour need to come clean about whether taxing the family home is next on their list.

“We know Rachel Reeves is putting together her plans for tax rises in the autumn. Families need certainty and Labour need to rule out balancing the books on the backs of homeowners.”