Labour’s deputy leader has suggested that the party should raise taxes on savings and investments.
Angela Rayner made the comments as she criticised Rishi Sunak, the Prime Minister, for paying a lower rate of tax than most working people.
It is understood that a large increase in Capital Gains Tax (CGT) is on the table if Sir Keir Starmer, the Labour leader, wins the next election.
Sir Keir and Yvette Cooper, the shadow home secretary, refused to rule out an increase in the levy after being publicly confronted about their plans yesterday.
A CGT rise would come on top of other raids on the middle-classes planned by Labour, including reversing the Government’s plan to abolish the lifetime cap on tax-free pension savings.
The Telegraph says the latest tax debate among senior Labour figures is likely to cause alarm among savers ahead of the election and may prompt a sell-off of assets.
Warnings
The plans to reimpose the cap on tax-free pensions savings prompted warnings that people would take early retirement before the next election to try to avoid the levy.
The possibility of a CGT rise under a Labour government came after records were published revealing that the Prime Minister earned nearly £5million in three years, but paid an effective tax rate of just 22%.
Ms Rayner said on Twitter: “Rishi Sunak’s much-delayed return reveals a Tory tax system where the PM pays a far lower tax rate than working people - who face the highest tax burden in 70 years. His latest handout to the richest 1% shows you exactly who he puts first.”
Following her remarks, Sir Keir declined to rule out that the party would bring levies on investment profits in line with Income Tax if it wins the next General Election.
Capital gains duties are currently levied at 20% on most assets, meaning it would have to be doubled.
The tax raised £15billion last year and the annual haul is expected to hit almost £18 billion by 2028. More than 300,000 taxpayers pay CGT, according to the latest official figures, compared with less than 200,000 a decade ago.
No current plans
A Labour Party spokesman said the party had no current plans to raise CGT, but that it could not rule out a change in the future.
On Thursday, records released by the Labour Party revealed that Sir Keir paid £23,930 in CGT last year, after earning £85,466 from his share of the sale of a house he bought for his sister and her children to live in.
It comes as he was accused of hypocrisy after it emerged his pension from his time as director of public prosecutions is exempt from the lifetime savings allowance he plans to reintroduce. On Thursday, he pledged to scrap the tax benefits of his own pension.