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Original poster

Rachel Reeves considering charging CGT on sale of main residence?

337 replies

Another76543 · 20/08/2025 11:34

It’s being reported today that Reeves’ latest idea is to tax homeowners on the capital gain made on the sale of their homes, where that home is above a certain value. From The Independent

“Rachel Reeves is considering hitting the owners of high-value properties with capital gains tax when they sell their homes as part of an attempt to fill a £40bn hole in the public purse.
The chancellor is said to be looking at ending the current exemption from capital gains tax for primary residences as she seeks ways to raise cash in the face of dire warnings about the state of the public finances - a move that would be seen as a "mansion tax".
Such a move would see higher-rate taxpayers pay 24 per cent of any gain in the value of their home, while basic rate taxpayers would be hit with an 18 per cent levy.

Sources told The Times that under proposals being considered for the autumn budget, the private residence relief would end for properties above a certain threshold.
The threshold is said to still be under consideration…….. “

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bombastix · 20/08/2025 12:15

I think it’s probably quite smart thinking - if people are put off they will sell now. If they hang on, the amount of tax goes up. If you hang on into retirement you either get hit with IHT on death assuming you don’t plan.

Reeves will be banking on there not being much sympathy for such a class of people.

Original poster
Another76543 · 20/08/2025 12:15

SummingUp · 20/08/2025 12:10

I think your £1.5 million figure @bombastix sounds more likely than £1.5bn 😄 But either way it's high. Even if people do leave the UK they'd still have to pay capital gains when selling their UK property.

They wouldn’t have to pay it if they sold up before the tax was introduced.

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SummingUp · 20/08/2025 12:15

@SweetPenelope yes and this would create an issue. I can't see this policy coming in, it's just speculation.

Original poster
Another76543 · 20/08/2025 12:14

Badbadbunny · 20/08/2025 12:10

Trouble is the "black hole" is here and now, but all these "punish the rich" taxes will take years to bring in revenue. This proposal will only affect those selling houses in future years, not today, and will "spread" the revenue over decades to come. IF it works, then it will help the deficit over the long term, but it will do beggar all for today's deficit, next year's deficit etc.

She should just take a hit and increase income tax and VAT by 1% which will bring in billions from day 1. Yes, it wasn't in the manifesto, but it needs doing. And let's face it, Labour are toast anyway and havn't a hope of winning the next GE, so I don't know why they're so bothered about what the electorate thinks.

To be honest, I think it's more of a "punish the rich" tax to keep their socialist/union backers happy rather than actually trying to plug the black hole.

“She should just take a hit and increase income tax and VAT by 1% which will bring in billions from day 1”

That’s exactly what she should have done, rather than trying to go after those she views as better off. Trying to raise taxes on a small minority will never raise very much.

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Original poster
Another76543 · 20/08/2025 12:13

SummingUp · 20/08/2025 12:01

I read it was being looked at for the sale of houses valued over £1.5bn so I think I can rest easy!
Lots of right-wing newspapers are trying to whip up a frenzy against Labour by speculating over multiple taxes that may or may not appear in the Autumn budget, without much substance it would appear.

I’m not sure The Independent is knows as being a “right wing newspaper”! If anything, it’s viewed as more left leaning.

The £1.5m is a guess by the media. It’s being reported that “The threshold is said to still be under consideration, but a £1.5 million starting point would hit around 120,000 homeowners”.

Yesterday, there were reports that a new property tax might hit homes over £500k.

All this is speculation, of course, but it’s clear that she needs to increase the tax take some how.

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SweetPenelope · 20/08/2025 12:11

As someone with a house worth over that amount it would probably stop us downsizing. There's a good article in today's Spectator

SummingUp · 20/08/2025 12:10

I think your £1.5 million figure @bombastix sounds more likely than £1.5bn 😄 But either way it's high. Even if people do leave the UK they'd still have to pay capital gains when selling their UK property.

Badbadbunny · 20/08/2025 12:10

Trouble is the "black hole" is here and now, but all these "punish the rich" taxes will take years to bring in revenue. This proposal will only affect those selling houses in future years, not today, and will "spread" the revenue over decades to come. IF it works, then it will help the deficit over the long term, but it will do beggar all for today's deficit, next year's deficit etc.

She should just take a hit and increase income tax and VAT by 1% which will bring in billions from day 1. Yes, it wasn't in the manifesto, but it needs doing. And let's face it, Labour are toast anyway and havn't a hope of winning the next GE, so I don't know why they're so bothered about what the electorate thinks.

To be honest, I think it's more of a "punish the rich" tax to keep their socialist/union backers happy rather than actually trying to plug the black hole.

bombastix · 20/08/2025 12:03

I think the threshold is intended to be above 1.5 million! So really it will affect those rather comfortably off of it came into effect.

its kite flying too - see how much protest there is on the idea at all

SummingUp · 20/08/2025 12:01

I read it was being looked at for the sale of houses valued over £1.5bn so I think I can rest easy!
Lots of right-wing newspapers are trying to whip up a frenzy against Labour by speculating over multiple taxes that may or may not appear in the Autumn budget, without much substance it would appear.

Original poster
Another76543 · 20/08/2025 12:00

Tiredofwhataboutery · 20/08/2025 11:52

I’m not entirely against it tbh. I suspect rich people will set up limited companies and dodge paying stamp duty and qualify for tax relief at sale. I It’s possibly just jealousy as my house hasn’t increased much in the last 12 years!

It seems to me that she’s just scrabbling around for ideas because of their ridiculous manifesto pledge not to raise income tax etc. Raising the basic rate of income tax and VAT by 1% would have raised billions, but her hands are now tied. Instead, they are trying to get a small percentage of the population to pay more. Those people are often those who could easily move abroad. She is driving wealth and wealth creators away.

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Tiredofwhataboutery · 20/08/2025 11:52

I’m not entirely against it tbh. I suspect rich people will set up limited companies and dodge paying stamp duty and qualify for tax relief at sale. I It’s possibly just jealousy as my house hasn’t increased much in the last 12 years!