Rachel Reeves 'considering new tax on expensive homes’ in Budget

Chancellor Rachel Reeves is reportedly considering introducing new, higher council tax bands specifically targeting owners of expensive homes. This potential move, to be announced in the upcoming Budget, is seen as a way to address financial shortfalls attributed to the previous government. While no final decisions have been made, Reeves has previously indicated that increased taxation on the wealthy will be a component of the Budget. The aim of this measure is to ensure that higher-earning individuals contribute their fair share to public finances. While alternative proposals such as a levy on property value or imposing capital gains tax on the sale of expensive properties have been discussed, they are considered less probable than the council tax reform. It is also anticipated that a "mansion tax," which would impose capital gains tax on the sale of the most valuable homes, may be announced. Reeves has previously suggested that the economic impact of austerity measures has been greater than anticipated, paving the way for tax increases on the wealthiest segment of the population. Current council tax rates are determined by property bands, ranging from A for the lowest value properties to H. The idea of creating additional council tax bands for the most expensive homes in England was previously explored by the Conservative government ... download the app to read more