Rachel Reeves considering charging CGT on sale of main residence?

Yep this!

Will they deduct the cost of mortgaging, the costs of buying, costs in property upkeep, improvements etc. A landlord can deduct some of these from profits when selling a second home. I've "made" £500k on my home over 30 years, but deduct expenses and inflation, and there's not much profit to charge cgt on.

Of course a majority of Labour voters do not live in houses worth over £1.5m, but there are an awful lot of pretty normal houses in London (zones 1-3) that cost more than £1.5m, and a high proportion of them would be occupied by Labour voters, going by the voting patterns for the more central London boroughs.

There’s a lot of sense in that except Labour have not been able to reform welfare and they have excluded increasing income tax. I don’t see she is suddenly going to look at income tax. The system of payment is broken for income tax. You have a tiny minority paying actual tax. She is going for accumulated wealth given how she has boxed herself in.

£1.75m house bought for £250k 40 years ago - tax due under this proposal for a higher rate taxpayer - £360,000. Tax due for a lower rate tax payer - £270,000.
IHT due if it isn't sold before death (assuming full allowances and left to children) - £200,000.

This isn't going to encourage people to sell up early!

We already do badly, paying for prescriptions, Uni fees, no bus pass until SPA (outside London) and many more.

Be taxing us to breathe next at this rate.

And those elderly that have to sell to fund their care will be losing a vital amount of those funds.

Absolutely right - she’d get a lot more respect if she just cane out and said “look guys, I know we said we wouldn’t raise xyz taxes but this is the situation we are in so we’ve got to collectively rip the plaster off and raise income tax/VAT/inheritance tax (or whatever) - shirt term pain for long term gain”. Instead she’s tinkering at the edges, made employing people more expensive and Non-Doms leaving the country. Brilliant!!

So another tax only people in London and the South East will pay. Marvellous. Talk about discrimination.

The biggest I think will actually make a difference to the bottom line is a penny on income tax (whilst raising thresholds so it doesn't hurt lower earners so much).

Cutting the welfare bill would also help but doesn't seem to be achievable.

But the better option of all would be get the economy booming so there was a bigger tax take all round because of bigger earnings and profits.

Come on do you really think a majority of Labour voters in these areas have properties of this kind? Some will, including the PM, but not anything like a majority.

The potential policy that stings this group more is 500k property tax proposals imo

So would you have people who have paid stamp duty when they bought the house, then being charged twice by having to pay CGT when they sell? And if you have a mortgage of 90% on a £1.5m house, do you pay on the equity you own in it rather than on the sale of the house?

All smacks of lefty 'bash the rich' rather than considered economic policy.

Yes and there is nothing wrong with this. They are clearly looking at different ways to change the tax system. Lots of ideas will be suggested by lots of people. It is the job of the civil service to go away and look at the practicalities of each. Some are bound to be unworkable and others may be useful ideas.

The problem is the newspapers don't report it as such. They report is as though Rachel Reeves has personally suggested every single idea and is about to implement it no matter how bonkers it is.

Well it would help DH and I make the neverending decision whether to downsize or not 🤣
(Except our home isn't worth 1.5m so maybe not).

Idiotic Labour Party

https://www.spectator.co.uk/article/britain-is-paying-for-reevess-non-dom-tax-disaster/

Yes but she’s not going to do that. So you are looking at these kinds of marginal taxes. Reeves doesn’t like well off people, she’s not going to start increasing income tax for everyone and particularly not now.

That proposal is not going to be popular in lots of very strongly Labour voting areas of London, where £1.5m gets you a fairly standard Victorian terrace in a not particularly upmarket area, eg https://www.rightmove.co.uk/properties/162913910#/?channel=RES_BUY

Not exactly super-luxury homes for the mega-rich.

And downsizing for the elderly people wouldnt happen. It would cut the market dead. Stupid stupid women. Rather like hammering small business and hospitality. My hairdresser has been clobbered twice with NI and increase in NMW. He has put up his prices but eventually people just want pay.

LABOUR ARE MUCH MUCH WORSE WITH THE ECONOMY THAN ANYONE THOUGHT

I assume just under is probably how people will handle this but clearly you would calculate your possible liability. Otherwise it gets silly.

The price of houses in UK is just ridiculous. It does not match the average wage.
Somehow, they need to come down. So, if more taxes are to be paid, then the prices will have to stay low or the mortgage interest be adjusted.

I think it will work like the £100,000 income tax cliff edge. If the threshold is £1.5m, houses will be put on the market at £1.49m unless it is clearly likely to go for over £2m. There will be nothing at all between £1.5m and £1.75m.

If your house is over the threshold there would also be real advantages to selling in retirement rather than moving before - particularly if you are able to take early retirement and have minimal income (by living off savings so paying tax on interest only).

As others say - just put 1p in Income Tax. You are a shit Chancellor anyway and will be hopefully booted out during the next election.

True, so depends how quickly they'd introduce it after announcement and how quickly a £1.5m+ house takes to sell.

There will be a lot of houses at £1.499 million then.

And who on earth is going to do the valuations? What if they value too high to get it higher than the threshold or surely houses at there or thereabouts that level will suddenly be sold for just under.