Conservative leader Kemi Badenoch has warned that Rachel Reeves could have an “unpleasant shock” in store for homeowners.
She said on GB News that the Labour Government is weighing up whether to impose a capital gains tax on people selling their properties.
Mrs Badenoch said the Chancellor has allowed a “summer of speculation” about what taxes will rise in the upcoming Budget.
She spoke to GB News about forcing a vote in Parliament, which she hopes will “flush out” where Labour MPs stand on the matter.
Kemi Badenoch fears what Rachel Reeves may have in store for homeowners
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GB NEWS / PA
“I have just been speaking to a group of people here in Surrey who are very worried about the cost of living,” she explained.
“They are worried that taxes are going up yet again, and they can’t afford it. This is happening because Labour has allowed a summer of speculation about what taxes are going up.
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“The Treasury has been saying some things, but not denying other things. People believe their properties are going to be taxed. What a wealth tax usually means is people’s properties, businesses, and family homes.
“It makes it harder to buy your own home and buy your first home. The Conservatives will oppose them every step of the way.”
Rachel Reeves is said to be weighing up property tax changes
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GB NewsAsked to expand further on what she is planning in the Commons on Wednesday, Mrs Badenoch said she is hoping to effectively force transparency from the Government.
A capital gains tax is a charge applied when you sell an asset that has increased in value.
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Main homes are currently exempt, but it applies to the sale of things like paintings, second homes, and stocks and shares.
The Government is said to be considering scrapping the relief for main homes when they are on the pricier side, The Times reports.
Kemi Badenoch said the Tories are the only party on the side of homeowners
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GB NEWS
Last year, the tax raised £13.3bn, and expanding it could secure a hefty windfall for a Government hoping to plug the gap between the amount being spent on public services and the money being generated through taxes.
But Mrs Badenoch urged Labour to be “honest” and come clean about what changes it will make to property tax.
She told GB News: “We need the Government to be honest with people. They have been making a lot of noises about black holes when really, they’re the ones who created a black hole with their Budget last year.
“They taxed businesses, which have shed loads of jobs. Unemployment has been rising every month, and the economy is doing really badly.
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“They are now coming back for more. We need them to be honest, and that is what the vote is about — Labour telling us exactly what they will do.
“We’re the only party that will defend home ownership.”
The Treasury is yet to commit to a property tax plan and insists it remains committed “to keeping taxes for working people as low as possible.”