Since becoming Prime Minister, Andy Burnham has made support with the cost of living a key focus.
One of the headline measures announced this month is the planned removal of VAT on household electricity from October 2026. Household electricity is currently subject to VAT at 5%, and the Government estimates that removing it could save the average household around £45 a year.
Attention is also turning to what could come next for tax policy, with economists and commentators already considering whether further reforms could feature in the Autumn Budget.
For business owners, landlords and investors, the important message is not to make decisions based on headlines alone. Many of the measures being discussed remain informal proposals or speculation rather than confirmed changes to the law.
Capital Gains Tax, property taxation and other wealth-related taxes have all attracted discussion, but little has been formally confirmed at this stage.
That said, significant tax changes are often signalled well before they take effect. The months ahead therefore provide a useful opportunity to review your longer-term plans, particularly if you are considering selling a property or business, restructuring your affairs or planning for succession.
What should you do now?
Our recommended approach is to:
- Avoid making rushed decisions based on speculation.
- Review your current tax position.
- Consider different scenarios ahead of the Autumn Budget.
- Take professional advice before carrying out any significant transactions.
Further tax announcements are likely over the coming months, making regular reviews of your business and personal plans increasingly important.
Concerned about how future tax changes could affect you?
We can help you review your current position and understand the options available before you make any major decisions.
