Rachel Reeves ‘contemplating new tax on costly houses’ in Budget
With just weeks to go until the Budget, the Chancellor is reportedly hoping going after the richest home owners will help plug the hole in the finances left by the Tories
Rachel Reeves is said to be considering bringing in new higher bands of council tax to target the owners of expensive homes.
With just weeks to go until the Budget, the Chancellor is reportedly hoping going after the richest home owners will help plug the hole in the finances left by the Tories.
While no decisions have been taken, Ms Reeves has repeatedly suggested higher taxes on the wealthy will be “part of the story” in the Budget on November 26.
READ MORE: Chancellor Rachel Reeves ‘considers Budget income tax hike’ – as minister gives responseREAD MORE: Chancellor Rachel Reeves ‘considers Budget income tax hike’ – as minister gives responseREAD MORE: Chancellor Rachel Reeves ‘considers Budget income tax hike’ – as minister gives response
One person close to Ms Reeves told the Financial Times: “The idea of increased taxation on high-end homes is well established. The discussion is about how you do it.”
Another said: “It is vital for the political balance of the budget to show everyone is paying their fair share.”
Other options are believed to include a levy on the value of homes or imposing capital gains tax on the sale of expensive properties, but these are thought to be much less likely.
Ms Reeves is also expected to announce a “mansion tax” that will impose capital gains tax on the sale of the most expensive homes. Speaking last month she paved the way for tax rises on the wealthiest, by suggesting that Brexit and austerity had had a bigger effect on the public finances than expected.
How much homeowners pay in council tax, a levy on residential properties by local government, depends on the band – with band A for the lowest value properties up to band H.
The idea of creating new council tax bands for England’s most expensive homes in England was first considered by the then Conservative chancellor George Osborne in 2012.
Ruth Curtice, head of the Resolution Foundation think-tank, said: “I could see them doing a supercharged council tax for high-value properties — it’s one way to tax wealth.
“On its own it wouldn’t sort out the mess that is property taxation, but we do already pay council taxes and you’d be asking the wealthy to pay a bit more.”
