As part of the upcoming Autumn Budget, Chancellor Rachel Reeves is expected to focus on raising the Capital Gains Tax (CGT) on the sale of shares, rather than second homes, former Treasury officials have told the Financial Times (FT).
According to reports, Reeves is expected to target the current 20% rate applied to the sale of shares and other assets, as part of efforts to close an anticipated £40bn funding gap.
Edward Troup, former head of HM Revenue & Customs, told FT that Reeves could consider equalizing the CGT rates for shares and property at around 24%.
He noted that a single rate in the “mid-20% range” would be a reasonable option for the Chancellor.
These reports follow comments from Prime Minister Keir Starmer, who has emphasised that those with the “broadest shoulders” should carry the greatest burden in addressing the funding gap.
Despite some speculation that CGT could rise as high as 39%, Starmer recently dismissed these figures, signaling that ministers are unlikely to raise the rates dramatically.
The Treasury has declined to comment on any potential tax changes ahead of the Budget, due on the 30th of October.
