Labour are considering equalising capital gains tax (CGT) with income tax, according to reports, which could hike landlord tax bills when selling properties.
Sky News reports that Labour ministers are mulling over a draft paper that would push CGT into line with income tax.
CGT is currently 18% for basic-rate taxpayers and 24% for higher-rate taxpayers on gains above the annual tax-free amount, currently £3,000 for 2025/26.
Income tax is 20% for basic-rate taxpayers, 40% for higher-rate taxpayers and 45% for additional rate.
The draft paper, from the Labour Growth Group and Good Growth Foundation think tank, also suggests slashing income tax, with extra funding to come from higher CGT, land taxes and changes to council tax.
Capital gains tax (CGT) receipts for 2025 were £13.6 billion, according to HM Revenue and Customs data.
A fuller report is expected after the May local council elections, according to Sky.
Equalising CGT and income tax would mean large bill increases for many landlords selling up, particularly those in the higher-rate and additional-rate tax bands.
