Rachel Reeves is set to spare second home owners from a capital gains tax raid in her first budget, according to reports. Second homes will be left untouched because raising the levy on them could end up costing the Treasury money,

Rachel Reeves should increase capital gains tax (CGT) at Labour’s upcoming Budget, a group of millionaire business owners have urged, estimating the measure would raise £14bn a year.

Ahead of the autumn budget from the new Labour Party government, the millionaire entrepreneurs said they would welcome an increase to 45% in capital gains tax to match the higher rate of income tax.