21 Aug Questions Over Future Tax Changes Under New Prime Minister Andy Burnham
What could the latest tax changes mean for businesses, landlords and investors?
While some cost-of-living measures have been announced, many proposed tax changes remain unconfirmed. Business owners, landlords and investors should avoid making decisions based on speculation and instead review their tax position and consider potential scenarios ahead of the Autumn Budget.
Latest Cost-of-Living Support
Since becoming Prime Minister, Andy Burnham has made cost-of-living support a key focus. One headline measure announced this month is the planned removal of VAT on household electricity from October 2026, which the Government estimates could reduce average household bills by around £45 a year. Household electricity is currently subject to VAT at 5%.
Future Tax Policy and the Autumn Budget
At the same time, attention is turning towards how future tax policy might develop. Economists and commentators are already speculating about whether further tax reform could feature in the Autumn Budget.
Potential Tax Changes for Businesses, Landlords and Investors
For business owners, landlords and investors, the key message is not to react to headlines. Many of the most talked-about measures remain informal proposals or speculation, rather than law. Changes to capital gains tax, property taxation and other wealth-related taxes have all been widely discussed, but little has been formally confirmed at this stage.
Reviewing Your Long-Term Plans
History shows that major tax changes are often signalled well before implementation. That means now is a good time to review long-term plans, particularly if you are considering property sales, business disposals or succession planning.
Preparing for Potential Tax Changes
Our recommended approach:
- Avoid making rushed decisions based on speculation.
- Review your current tax position.
- Consider scenario planning ahead of the Autumn Budget.
- Seek advice before implementing major transactions.
Frequently Asked Questions
1. What cost-of-living support has been announced?
The Government has announced plans to remove VAT on household electricity from October 2026. Household electricity is currently subject to VAT at 5%, and the Government estimates the change could reduce average household bills by around £45 a year.
2. What tax changes are currently being discussed?
Changes to capital gains tax, property taxation and other wealth-related taxes have been widely discussed, although many of these remain informal proposals or speculation rather than confirmed changes to the law.
3. Should businesses, landlords and investors make decisions based on proposed tax changes?
Businesses, landlords and investors should avoid making rushed decisions based on speculation. Many of the measures being discussed have not been formally confirmed.
4. How can businesses and individuals prepare for potential tax changes?
Reviewing your current tax position and considering different scenarios ahead of the Autumn Budget can help with longer-term planning. Professional advice should be sought before implementing major transactions.
5. Why is it important to review long-term plans now?
History shows that major tax changes are often signalled before they are implemented. Reviewing long-term plans can therefore be particularly useful if you are considering property sales, business disposals or succession planning.
The coming months are likely to bring further tax announcements, making regular reviews of your business and personal plans more important than ever. If you’d like to discuss any of the above issues, please get in touch with us – we’d be happy to help.