Inheritance tax overhaul floated as part of Labour's secret £10billion HMRC raid: 'Be honest!'

Among the policies being floated within Labour include hikes to CGT, which would raise around £8billion, and making it more difficult for taxpayers to "gift" assets when attempting to avoid paying IHT.

Speaking to The Guardian, a party insider shared: "We are starting from ground zero with our public services and infrastructure.

"We have to show we are serious about borrowing and raising revenue from taxes if investors are going to walk in step with us. These measures are part of unlocking wealth and putting it to work.”

However, before implementing any tax reform, Starmer and Shadow Chancellor Rachel Reeves will present their fiscal agenda to the Office for Budget Responsibility (OBR), as well as get costings directly from HMRC.

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Ahead of voters heading to the polls on July 4, Labour has face scrutiny overs its funding plans if the party wins the election.

So far, the Official Opposition has pledged to not raise income tax, National Insurance or VAT. It has also confirmed it would not charge capital gains tax on primary residences.

However, Labour has not committed to unfreezing tax allowances and has previously stated no final decisions has been made on its fiscal agenda when in office.

A Labour spokesperson said: “Keir and Rachel have made clear that our priority is growing the economy, not increasing taxes.

"We have set out fully costed, fully funded plans, with very specific tax loopholes we would close. Nothing in our plans requires any additional tax to be increased.”

During the election campaign, the Conservative Party have accused Labour of preparing tax rises worth £2,094 for every family and said the party will raise capital gains tax and inheritance tax by 17 per cent.

Reacting to the claims, Chancellor Jeremy Hunt said: "Labour are privately telling the media that they are already planning a series of big new tax rises on people’s family homes, pensions and small businesses which they do not intend to set out before the election on July 4.

"This lack of honesty from Labour is exactly why people will be concerned about the prospect of an unaccountable Labour majority that will raise taxes however and whenever it wants. Keir Starmer should have the courage and conviction to be honest with the British people about the tax rises Labour are planning.”

What are the rumoured changes to inheritance tax?

Reeves and Starmer are exploring reforming IHT rules on agricultural land and other family businesses. Currently, a taxpayer can claim up to 100 per cent relief on this land when inherited if it being used for farming.

Many within Labour are keep to axe this tax relief due to concerns wealthier Britons are purchasing land to avoid paying tax, as well as business relief which allows someone to pass on a company or shares if it unlisted.

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Reports suggest the party is looking into capping the benefit from agricultural and business relief at £500,000 for each person, rather than scrapping which would raise £2.3billion by the 2029-30 tax year, according to the Institute of Fiscal Studies (IFS).

What are the rumoured changes to capital gains tax?

CGT is a tax on the profits someone makes when selling an assets. As it stands, profits from the sales of second homes or shares in businesses are charged at a much lower rate than someone's income.

Many within the party are reportedly keen to raise the rate of capital gains tax to generate more revenue for public services which they believe will get more Labour voters to the polls.