Rachel Reeves could increase capital gains tax on sales of second homes and businesses by up to 39% in this month’s Budget, reports have suggested.
The Chancellor would consider an increase from the current rate, between 20 and 28%, for higher rate taxpayers.
A Treasury spokesperson said any reports of specific tax changes were “pure speculation”.
There is said to be growing concern over limited options for raising taxes to plug a deficit which the Institute for Fiscal Studies (IFS) think tank estimates to be worth £25 billion.
Speaking to the Guardian, a source said: “Some very important tax decisions are being postponed until very late in the day. »
Another explained how the Treasury’s tax increase plans were in “complete disarray”.
Mrs. Reeves and Mr. Keir Starmer have repeatedly pledged not to increase taxes on “workers” while ruling out any increase in income tax and national insurance.
A Treasury spokesperson denied suggestions the plans were in “disarray”.
“These claims are inaccurate,” they said while adding that they were not commenting on “pure speculation” regarding specific tax measures ahead of the budget.