Minister fails to rule out hitting homeowners with capital gains tax

A WALES MP and Treasury minister has not ruled out hitting owners of high-value houses with capital gains tax (CGT) when they sell their family home.

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Chancellor Rachel Reeves is reported to be considering ending the current exemption from CGT for primary residences as she seeks ways to raise cash in the face of dire warnings about the state of the public finances.

Such a move would see higher-rate taxpayers pay 24% of any gain in the value of their home, while basic rate taxpayers would be hit with an 18% levy.

The Times reported that under the proposals being considered for the autumn budget, the private residence relief would end for properties above a certain threshold.

The threshold is still under consideration but a £1.5m starting point would hit around 120,000 homeowners who are higher-rate taxpayers with capital gains tax bills of £199,973, the newspaper reported.