With Labour heavily predicted to win the upcoming UK election, there has been much talk about future tax plans.
Keir Starmer insists the party’s priority is economic growth, but many believe it will have to raise taxes to shore up the public finances. With increases in income tax, employees’ national insurance and VAT all ruled out, capital gains tax (CGT) is a potential target.
CGT is payable when you sell an asset that has risen in value since it was purchased. This includes property, though not your main residence. Starmer has already denied that Labour might remove the main residences exemption, but has otherwise been silent on CGT. Yet he and his shadow chancellor, Rachel Reeves, have reportedly drawn up possible CGT reforms that could raise £8 billion a year.
