Treasury denies house sale tax plan

The number of first-time buyers is at an all-time low

The Treasury has angrily denied reports in a Sunday newspaper that it is considering plans to impose capital gains tax on the sale of all houses.

The tax, of up to 40% of profits, is now paid on the sales of second homes only.

The Sunday Telegraph said Treasury officials had held confidential discussions with private sector tax consultants on extending the levy.

But a Treasury spokesman described the report as "unadulterated garbage".

Accountants PricewaterhouseCooper (PwC) also denied that discussions with Treasury officials had taken place on taxing house sales, as reported in the newspaper.

A spokesperson for PwC said: "We have a constructive working relationship with the Treasury and talk regularly to Treasury tax officials, but the idea that we have had any confidential discussions with them on this issue is completely untrue."

The firm said both it and the tax expert quoted in the story had been "astounded" by the newspaper's assertions.

According to The Sunday Telegraph, the Chancellor was looking to control the buoyant housing market.

The paper reported that imposing capital gains tax on first homes would have raised £11bn in the past financial year, according to Treasury figures published alongside last year's pre-Budget report.