The UK Government has been forced to deny that Rachel Reeves is planning to raise Capital Gains Tax (CGT) to as high as 39%.
The Chancellor has opened the door to hiking CGT to help plug a hole of up to £25billion, but has been warned that increasing the rate by too much would backfire and lose the Treasury vital revenue.
The Telegraph says CGT is paid on the profits made on the sales of assets, with the current rates for most people ranging from 10% to 24%.
However, Treasury officials were reported to have modelled a range of potential rises, including pushing rates to between 33% and 39%.
Sources close to the Chancellor denied the reports and a Treasury spokesman said: "This reporting is not based on Government modelling - we do not recognise it. This is pure speculation."
A Government source said the Treasury had ruled out raising the levy to such a high level, but did not deny it could be increased to more than 30%.
The highest rate is currently 28%.