Rachel Reeves considers raising capital gains tax to 39%

Whitehall sources say a scramble is under way to find taxes to fill a hole the IFS thinktank says is as big as £25bn before the chancellor delivers the budget on 30 October. Photograph: Phil Noble/Reuters

Rachel Reeves is considering raising capital gains tax as high as 39% in the budget, the Guardian can reveal, amid a scramble to raise funds for crumbling public services.

Treasury modelling being reviewed by the chancellor and seen by this newspaper shows officials are testing a range of 33% to 39% for capital gains tax (CGT).