Andy Burnham became the UK’s seventh Prime Minister in a decade yesterday. Within 24 hours he and his new Chancellor John Healey had already made their first economic move-cutting VAT on household electricity bills from 5% to 0% from October, funded by scrapping Starmer’s Digital ID programme.
It is a deliberately populist opening. But for anyone with wealth connected to the UK, the more important question is what comes next-and what it means for your financial position right now.
Burnham has committed to honouring Labour’s 2024 manifesto pledge not to raise income tax, VAT, or National Insurance. He has also ruled out a wealth tax as a first major economic priority.
That leaves three areas in focus:
Capital gains tax: No formal proposal has been announced, but speculation about alignment with income tax rates-taking capital gain tax from 24% to as high as 45% for higher earners-is already changing behaviour around business disposals and property sales.
Property taxes: Burnham has signalled reform of council tax and stamp duty, with overseas buyers and second-home owners likely to pay more. The mansion tax threshold could drop from £2 million to £1.5 million, drawing an estimated 150,000 more households into the charge.
Inheritance tax: No confirmed position, but the April 2026 Business Property Relief changes have already tightened the IHT landscape significantly. Further reform remains on the table.
As one analyst put it directly: “Healey resigned from Cabinet last month demanding more money for defence. He now runs a Treasury under a prime minister who has ruled out raising income tax, VAT and National Insurance. That spending has to be funded somewhere-and wealth, capital gains and property are the obvious remaining options.”
Any major tax announcements are unlikely to be immediate. The Chancellor must give the OBR at least 10 weeks’ notice before a budget, putting the earliest realistic date at October 2026.
That window, between now and the first budget-is historically the most valuable planning period available to HNW individuals. The rules in place today may not be the rules in place by the time Healey stands at the dispatch box.
For internationally mobile clients managing wealth across the UAE, South Africa, and the UK, five specific areas deserve attention:
CGT exposure: If you hold UK assets with embedded gains, whether investment portfolios, second properties, or business interests, understanding your position before rates potentially change is worth doing now, not after an announcement.
UK property as a non-resident: Burnham’s signals point toward higher costs for overseas owners. Stamp duty reform, mansion tax threshold reductions, and potential CGT changes all point in the same direction. If your UK property position has not been reviewed recently, now is the time.
UK pensions: John Healey’s formative Treasury experience was under Gordon Brown, who overhauled pension tax relief significantly. If you have a UK pension and have not reviewed contributions, drawdown timing, or QROPS suitability, the pre-budget window is the most valuable time to act.
Sterling exposure: GBP has already slipped 1.5% since Burnham’s election on Friday. For clients managing wealth across AED, GBP, and ZAR simultaneously, the currency allocation question is worth revisiting as part of a deliberate review-not a reactive one.
UK domicile position: Most British nationals living abroad remain UK-domiciled without realising it, leaving their worldwide estate exposed to UK inheritance tax. With IHT reform on the table under a more interventionist government, reviewing your domicile position before the budget is more important now than it has been in years.
“We are already seeing behavioural change ahead of any formal announcement. When CGT alignment with income tax becomes a credible possibility, investors with embedded gains start making decisions today that they would otherwise have deferred.”
If you have UK assets and have not reviewed your position in light of this week’s political change, speak with our team.
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This article is for informational purposes only and does not constitute financial or tax advice. Tax rules referenced are subject to change. Always seek independent professional advice before making financial decisions. The Michele Carby Practice operates under Holborn Assets, regulated by the DFSA (UAE) and FSCA (South Africa). Sources: CNBC, Bloomberg, Money Marketing, Saffery, Grant Thornton, July 2026.