UK Chancellor of the Exchequer Rachel Reeves is considering taxing high-value family homes as she looks for ways to plug a multibillion-pound hole in the upcoming budget.

Chancellor Rachel Reeves is weighing plans to scrap capital gains tax exemptions on high-value homes, in a move dubbed a “mansion tax”, to raise billions and plug a £40bn fiscal gap. Property experts warn it could stall sales and hit pensioners downsizing.

The changes would see higher-rate taxpayers pay 24 per cent of the value of gains in tax after the sale of homes over £1.5m.