July 29, 2026
General
Amanda Perrotton
With Andy Burnham becoming Prime Minister and John Healey appointed as Chancellor of the Exchequer, attention has quickly turned to what the change in leadership could mean for the UK’s tax system.
While there has already been an announcement that VAT will be removed from household electricity bills from 1 October 2026, much of the wider tax landscape remains uncertain. Many of the most significant tax changes affecting individuals and businesses are still those that have already been legislated for, although the new Government has indicated that further announcements may follow over the coming months.
One of the clearest messages so far is a commitment not to increase the main rates of:
The Government has also stated that it intends to continue operating within its existing fiscal rules, meaning any new spending commitments will need to be carefully balanced against tax revenues.
Whilst these commitments provide some certainty, they inevitably limit the options available if further public spending is required.
Although no major reforms have been confirmed, several areas are already attracting attention.
Andy Burnham has indicated that he wants to review the Income Tax personal allowance, suggesting that frozen thresholds have placed increasing pressure on lower earners.
There has also been speculation that the Government could revisit the increase in employer National Insurance contributions introduced in April 2025, although no formal announcement has been made.
Property taxation continues to be an area to watch.
The proposed High Value Council Tax Surcharge (HVCTS), due to apply to residential properties in England worth more than £2 million from April 2028, remains on course, although aspects of the regime could still change following the recent consultation.
There has also been renewed discussion around wider reform of property taxes, including potential changes to Council Tax and Stamp Duty Land Tax, although these remain longer-term policy ideas rather than confirmed proposals.
The Government has already announced a 20% reduction in business rates for pubs, clubs and live music venues from April 2027. This may signal a broader focus on supporting high streets and the hospitality sector, although it remains to be seen whether further reforms will follow.
The April 2026 reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) have generated considerable debate, and there has been speculation that aspects of these changes could be revisited. At this stage, however, no formal commitment has been made.
Capital Gains Tax (CGT) also remains an area of speculation. Whilst there are currently no formal proposals, commentators have suggested that future changes could include higher rates or closer alignment with Income Tax.
Any such changes could have significant implications for business owners considering a future sale or succession planning, making this an area that many taxpayers will be watching closely.
Whilst political attention is focused on Westminster, many significant tax changes have already been legislated for.
These include:
For many individuals and businesses, these confirmed measures are likely to have a greater impact over the coming years than any future announcements arising from the change in Government.
Major tax announcements are unlikely until the Chancellor delivers the Autumn Budget, when we expect more detail on the Government’s longer-term tax strategy.
Until then, much of the discussion remains speculative. Individuals, businesses and professional advisers should therefore remain focused on the tax changes that are already confirmed, while keeping a close eye on future developments.
We’ll continue monitoring announcements as they emerge and will keep our clients and professional contacts updated on any significant changes. If you’re considering a transaction or planning exercise that could be affected by future tax reforms, obtaining specialist advice early can help ensure you’re well placed to respond.
