“We will maintain private residence relief so that people’s homes are protected from capital gains tax,” said a spokesman.
A Labour spokesman said that the party had already set out its tax plans and added: “Nothing in our plans requires any additional tax to be increased and there will be no return to austerity if Labour are elected on July 4.”
Successive Labour frontbenchers have refused to rule out raising CGT rates. Increasing the tax in line with income would mean a jump from a higher rate of 24 per cent to 40 or even 45 per cent, raising an estimated £8 billion.
However, sources close to Ms Reeves have denied that the party would impose CGT on family homes.
Speaking in response to Labour’s manifesto on Friday, Laura Trott, the chief secretary to the Treasury, said: “The idea that Labour are secretly planning to put capital gains tax on your primary residence for the first time is a disastrous policy for families up and down the country.
“It is something that the Labour Party should not do in secret. They must be honest about their plans and the impact that this would have on family homes up and down the country.”