Tories claim Labour plans tax raid on home sales in ‘desperate’ bid to change election fortunes

The Tories have launched an astonishing attack on Labour today suggesting that a Keir Starmer led government would be the first in history to levy capital gains taxes on people when they sell their primary homes.

Such a move could cause a crash in the housing market and was based on Labour’s deputy leader Angela Rayner failing to respond to Tory cabinet minister Penny Mordaunt’s claim on capital gains tax on primary residents last night.

The allegations came in the Tory response to Labour’s manifesto launch yesterday. it was part of a wider document produced by the Tories alleging Labour was planning 18 new taxes secretatly to make up what the Conservatives claim is £38.5 billion black hole in their manifesto pledges.

While Sir Keir and his shadow chancellor Rachel Reeves have ruled out raising taxes on the big three - VAT, income tax and national insurance - they have left the door open on other taxes but insisted “there are no plans” to increase them.

Laura Trott headed the tax briefing (Jordan Pettitt/PA Wire)
Laura Trott headed the tax briefing (Jordan Pettitt/PA Wire)

But the document came as the Tories appeared to be sliding toward a wipeout with five polls yesterday showing Reform UK is taking voters off them with YouGov even putting Nigel Farage’s party in second place.

Labour have not specifically denied the accusation on capital gains tax on primary residence sales but shadow chief Treasury secretary Darren Jones claimed the document was full of “imaginary taxes” based on Tory “desperation” in an electionw here they could be heading for a wipeout.

He said: “It’s a sign of the chaos and desperation in the Tory campaign that they are spending their time talking about things they have imagined and that Labour isn’t doing, rather than the state of the country after 14 years.

“The only surprise is that the imaginary ‘meat tax’ and the fantasy seven bins haven’t made another appearance.

“Labour has published a fully funded and costed manifesto which will deliver the change this country needs after 14 years of Tory chaos. In contrast to the Tories' unfunded plans which will leave families paying £4,800 more on their mortgages."

Laura Trott held a press conference to react to Labour’s manifesto in London (PXL_20240614_100847934.LONG_EXPOSURE-01.COVER.jpg)
Laura Trott held a press conference to react to Labour’s manifesto in London (PXL_20240614_100847934.LONG_EXPOSURE-01.COVER.jpg)

In her birefing this morning, Ms Trott repeated claims that Labour would increase taxes by £2,000 per household.

The document argued that every Labour victory was followed by a tax raid which had been “kept secret”. She focussed on Gordon Brown raiding pension funds two weeks after the 1997 election.

Ms Trott said: "Yesterday we saw a manifesto from Labour that contained no tax cuts, only tax rises - they even warned of it in their manifesto."

She added: "It's a tax trap manifesto from a Labour Party that has tax rises coded into its DNA.

"Labour's first, second and third answer to every problem is always the same: raise taxes. And as a result, the tax burden under Labour - on their own figures - will rise to be the highest our country has ever seen."

She repeated the claim that a vote for Nigel Farage’s Reform was “a vote for Keir Starmer” and warned that Labour could be “handed huge power with an unchecked majority”.

Among the other tax rises she claimed Labour are considering was a raid on pensions and a retirement tax. She also alleged that Labour would increase council tax bands and the level of local taxation as well as stamp duty on purchasing homes.

The Conservatives also claim Labour plan to introduce new green levies and extend taxation on fuel duty and driving cars.