{"id":928433,"date":"2026-08-20T16:15:34","date_gmt":"2026-08-20T21:15:34","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/08\/20\/one-two-punch-families-face-huge-capital-gains-death-tax-under-burnham\/"},"modified":"2026-08-20T16:15:34","modified_gmt":"2026-08-20T21:15:34","slug":"one-two-punch-families-face-huge-capital-gains-death-tax-under-burnham","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/08\/20\/one-two-punch-families-face-huge-capital-gains-death-tax-under-burnham\/","title":{"rendered":"\u2018One-two punch\u2019 \u2013 Families face huge capital gains death tax under Burnham"},"content":{"rendered":"
\n
\n

\n

\"Andy

Andy Burnham is looking at an overhaul of capital gains tax<\/figcaption><\/figure>\n

Bereaved families could face a huge tax bill under an Andy Burnham premiership if the likely next Prime Minister presses ahead with a policy to hike capital gains tax on assets of the deceased.<\/p>\n

Supporters of Burnham, including the former health secretary Wes Streeting and ex-transport minister Louise Haigh, have said previously they believe wealth in the UK is undertaxed and have called for reform of the capital gains tax (CGT) system.<\/p>\n

Among the measures suggested include aligning the rate of CGT paid with income tax and abolishing the CGT uplift on death<\/a>. Under current rules, upon death assets receive a \u2018tax uplift\u2019, meaning gains accrued over a lifetime are wiped out and assets are taxed at their original acquisition cost.<\/p>\n

Removing CGT uplift on death could leave families facing a near \u00a3120,000 tax bill when dealing with an inherited home that has risen \u00a3500,000 in value over 25 years, according to analysis from Rathbones.<\/p>\n

\u201cFor many families, the removal of CGT uplift on death would feel like a one-two punch. Not only could inherited wealth be subject to inheritance tax, but beneficiaries could also face a CGT bill on gains that accrued during their loved one\u2019s lifetime,\u201d said Ed Wood, financial planning director at Rathbones.<\/p>\n

Abolition impact<\/h2>\n

Current CGT rates are 18 per cent for basic rate taxpayers and 24 per cent for higher and additional-rate taxpayers, with a \u00a33,000 annual exemption.<\/p>\n

If the 24 per cent CGT rate is held, a property that has risen in value by \u00a3500,000 over a 25 year period could ultimately face a \u00a3120,000 bill when it is sold.<\/p>\n

A property that has seen its value rise by \u00a3300,000 could be slapped with a bill of roughly \u00a371,000.<\/p>\n

Rathbones also raised concerns on bringing CGT in line with income tax rates, with higher rate tax payers to potentially be slapped with a 45 per cent rate on gains.<\/p>\n

If this occurred, an additional-rate taxpayer making a \u00a350,000 gain outside tax wrappers such as ISAs and pensions could<\/a> face a tax bill of \u00a321,150, a near \u00a310,000 increase, compared with the current regime.<\/p>\n

Discouraging investment <\/h2>\n

Industry figures have raised concerns that a change such as this could discourage investors from selling assets in order to dodge a swollen tax bill, ultimately damaging the government\u2019s ambition to boost domestic investing.<\/p>\n

\u201cThere is a risk that further increases in the CGT burden could discourage investment at a time when the UK needs private capital to turbocharge economic growth,\u201d Wood said.\u00a0<\/p>\n

\u201cThere is also a question over whether higher rates would ultimately deliver the expected boost to the public finances, as investor behaviour often changes in response to tax increases.\u201d<\/p>\n<\/p><\/div>\n

Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Thursday 09 July 2026 4:48 am \u00a0|\u00a0 \u00a0Updated:\u00a0 Wednesday 08 July 2026 5:31 pm Andy Burnham is looking at an overhaul of capital gains tax Bereaved families could face a huge tax bill under an Andy Burnham premiership if the likely next Prime Minister presses ahead with a policy to hike capital gains tax on<\/p>\n","protected":false},"author":1,"featured_media":928434,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31356,30559],"tags":[151839,15346],"class_list":["post-928433","post","type-post","status-publish","format-standard","has-post-thumbnail","category-one-two","category-punch","tag-one-two","tag-punch"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/928433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=928433"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/928433\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/928434"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=928433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=928433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=928433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}