Rachel Reeves considering charging CGT on sale of main residence?

I think it's pretty much known/accepted that given how severely conservatives and labour have shit the bed... despite being a walking catastrophe Reform will win the next election and more economic mayhem will ensue.

My beloved Gary (of Gary's economics fame) shares this view and predicts they'll do one (disastrous) term before falling apart

RR
looking at more wealth taxes
surprise surprise

If a home is going to lose its exemption for PRR then they all should. It’s unearned income however much it is.

I’m not against it.

there are people in my town who bought their houses for £3,000 and they now sell for nearly £1 million. That’s a capital gain of over £900,000. Why should they not pay tax?!

I agree but surely these backbenchers will have to adapt and change or Labour are gone? They probably don’t care and only want to do a term anyhow - but surely they have to reflect and consider allowing RR to cut welfare as the data shows it’s unsustainable. Would also help Labour get back some support from the electorate.

They have to grow a pair and ignore some of their own party. They have a significant majority. If they are serious about saving the NHS long term they have no choice and have to make the hard decisions on welfare. Welfare should be for rare cafes only. We shouldn’t be sicker or less able to work than other European countries statistically. It makes no sense. So the criteria needs to become stricter. With less workers to pensioners due to ageing demographic there is no choice. Popularity shouldn’t come into it.

I would agree. But look at the performance on state benefits so far. Failure to reform disability and cut WFA. The other things you mention are even more contentious.

Reeves has to survive her party, the right wing press have torn her to bits. Let’s not pretend she has the capital politically either on left or right to make these massive changes. Being unpopular is one thing. Being unpopular and not achieved your unpopular policy is quite another. She does not have political nous.

I agree. I also think we need to look at removing the VAT exemptions, such as on financial services like IFA commissions on pensions/insurance/mortgage "advice" etc. No logic why it's not VATable when other kinds of financial and legal advice is VATable. Also membership subscriptions. Lots of areas that could be brought into the scope of VAT.

Just don’t sell until labour are kicked out , 4yrs and counting , won’t come soon enough

Get away with not paying more tax..?

I literally just explained with 2 children i pay an effective tax rate of over 80% on a portion of my salary.

Honestly please educate yourself.
Listen to Gary's economics - he is amazing
His podcast "This is how we stop the UK from falling apart" is a good start point.

I qualified for free school meals and my father was a bricklayer...I have an exceptionally well paying job which is now funding an exceptionally average lifestyle.

I am not the enemy... people making 40k pa, people making 20k per year. sick people, people on benefits or people with 8 kids arent the enemy... people with net worths of hundred of millions and billions are.

You've fallen for the bullshit rhetoric pushed to us... the longer you waste your time trying to drag people like me to the bottom the more messed up the economy becomes. ANYONE WITH A NET WORTH UNDER £10M NEEDS TO "UNIONISE". until we unite and start protesting for change this country will only go one way.

Labour sold their party and principles up the river and are in the pockets of lobbyists.

Keir sold his soul for a few average looking suits and a pair of taylor swift tickets... i feel fremdschämen (second hand embarrassment) just thinking about him.

The trouble is, the Labour back benchers won’t let them touch benefits, unless it’s to increase them.

Just charge people for remedial work. This is not a real clinical need.

i assume you mean £1.5m, not £1.5bn? I heard it was £1.5m in London and £500k outside of London. £500k sounds like a lot, but there are loads of places outside of London where prices easily hit £500k and above. My house is over £400k, so not quite £500k yet. But I’m far from ‘wealthy’. So I don’t see how they can call this a wealth tax. How much more do they plan to increase taxes by? The so-called black hole in the budget has already grown from £22bn to over £50bn under their watch, and they’ve barely been in power a year. If this what that they manage to do to the country’s finances in the space of a year, where will we be in 4 years time, and how many more times will they have increased our taxes by then? Will any of us have anything to show for all the hard work and sacrifices that so many families up and down the country have made over the years?

It makes me wonder why I even bother to be honest.

I’m also going to put in a tax against cosmetic surgery/cosmetic alterations. Apparently it’s one of the largest industries in the U.K. and bad surgery costs the NHS a lot of money so I suggest we find a way to tax that industry.

Some great suggestions 👍

I do think those high pensions need looking at… whoever suggested that on this thread. Trouble is, any change is going to cause grumbling… that’s why I think making small changes in multiple areas will limit the impact towards one particular group of people 🤷‍♀️

Triple lock needs to go, the welfare bill is unsustainable. There needs to be a time cap on unemployment benefits like in most other countries and people should be self insuring into a mandatory contribution system against periods of unemployment. That is a basic. There are loads of things other countries do successfully and they just need to copy it. The gambling tax is a must as well.

Property taxes need investigation - the whole thing is a mess. But there are issues with passing costs on to tenants as rents are too high already.

Maybe Rachel Reeves should come on MN and ask for some ideas to save money without destroying the economy?
Here is one way.

https://neweconomics.org/2025/02/the-bank-of-england-is-costing-us-billions

“Instead of an indemnity, the UK could adopt a deferred asset system, as used by the US Federal Reserve and the ECB. This system records losses on the central bank’s balance sheet, to be paid down by future profits. While this is essentially an accounting trick it avoids immediate fiscal strain on taxation and borrowing. As noted by Chris Giles at the FT, “monetary financing would look the same on central banks’ balance sheets” but the deferred asset makes sure this is temporary.
Moving to a deferred asset system could free up to £26bn a year for the Treasury. While these savings would ultimately disappear in the form of forgone profits in future the scale of profits per year has seemingly been much lower than potential losses – helping smooth the cost over time.”

If other central banks are doing it, so should we?

Personally, I think that the gov needs to shake up multiple areas in society and to me, it seems like that’s what they’re doing.

There needs to be reform on welfare, council tax, stamp duty, CGT, pensions etc etc. it all needs a good looking at.

I am not against a 1% tax increase - I think that needs to happen alongside shake ups in other areas…

For now.

Totally agree with this! Why aren’t they?

Eh? I’m not in London.