Displaying items by tag: capital gains tax

Reports suggest Chancellor Rachel Reeves may extend capital gains tax (CGT) to primary residences above a set threshold, sparking debate over a potential 'mansion tax’. Currently, homeowners pay no CGT when selling their main residence, but proposals would remove this exemption for higher-value properties. The Times estimates a £1.5m threshold could affect around 120,000 households, with bills reaching hundreds of thousands for long-term owners. Critics say it punishes older homeowners downsizing, discourages market mobility, and risks pushing wealth abroad. Many argue it unfairly double-taxes families already burdened by stamp duty. Property experts warn it could freeze the housing market, reducing sales and Treasury income. Supporters say it could help fill the £51bn fiscal shortfall while targeting wealthier households. Reeves has already cut CGT allowances in recent budgets and raised rates on shares and property. An announcement could come in the autumn Budget. Opponents argue re-banding council tax would be more effective and less disruptive.