Chancellor Rachel Reeves is planning a Budget tax raid on the owners of expensive homes, with new, higher bands of council tax seen as the best way to raise several billion pounds for the cash-strapped exchequer.
People briefed on Reeves’ thinking say that more radical options, such as creating a new levy on the value of homes or imposing capital gains tax on the sale of expensive properties, are much less likely.
Although no decisions have been taken, Reeves has said that higher taxes on the wealthy will be “part of the story” in her Budget on November 26. People close to her preparations say that “administrative simplicity” is key.
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