Rachel Reeves ‘could hike CGT to 39%’ in ‘tax bomb’ Budget hitting sales of second homes and businesses – with NICs, pension pots and inheritance also under threat [Video]

11:35 EDT 10 Oct 2024, updated 11:41 EDT 10 Oct 2024

Rachel Reeves could hike capital gains tax on sales of second homes and businesses as she battles to find ways of raising cash in the Budget, it was claimed today.

The Chancellor is said to be looking at increasing CGT from a typical level of 24 per cent to as high as 39 per cent.  

The move could hit hundreds of thousands of people who already pay large amounts of tax to the exchequer, with the Guardian saying the internal modelling suggests it could bring in extra revenues of around a billion pounds.

However, going to the extreme end of the increase could actually leave income lower after five years. 

In a signal of the scale of the problem faced by Ms Reeves, a senior source told the newspaper that they feared ‘some very big tax decisions are being left until very late in the day’. Another said the tax-raising …