What could Andy Burnham do to my investments?

Who wins, who loses, and what to watch out for

Andy Burnham’s economic vision potentially shifts the UK tax burden away from earned income and onto accumulated wealth, assets and land.

With Keir Starmer’s resignation reportedly paving the way for a Burnham-led government by September, property owners, landlords and those with an asset portfolio in the UK may be concerned about Andy Burnham’s tax policy preferences.

So, what do we know?

• Taxing assets, not employment: Burnham believes the UK tax system is fundamentally unbalanced, over-taxing hard work while leaving accumulated property and land wealth under-taxed.
• A radical property tax overhaul: He has had strong opinions for reforming the “highly regressive” council tax system, which still relies on outdated 1991 property valuations.
• The Land Value Tax (LVT): Burnham advocates for a form of Land Value Taxation. This annual levy targets the value of the land itself (excluding any structures built on it) to punish land hoarding and incentivise development.
• Scrapping Stamp Duty: He has floated the idea of using a land value levy to completely eliminate stamp duty on property purchases, simplifying the buying process.
• Inheritance Tax Replacement: Burnham has previously discussed replacing traditional Inheritance Tax (IHT) with a flat 10% “national care levy” on all inherited estates to permanently fund a universal social care system.
• Capital gains realignment: Backed by his leadership rival-turned-ally Wes Streeting, Burnham is open to reviewing Capital Gains Tax (CGT) to align it directly with standard income tax bands. If CGT was fully aligned with income tax rates, many investors and asset sellers could face significantly higher tax liabilities, with the top rate potentially rising from 24% to 45%.
• Landlord NI Contributions: He has signalled support for requiring landlords to pay National Insurance contributions on rental income to further equalise work and wealth taxation.

The unknown – where are the gaps?

• The reality of a broad “Wealth Tax”: While he wants to tax assets, Burnham has explicitly played down a European-style annual net wealth tax on total personal wealth (like stocks and luxury goods), leaving his exact boundaries vague.
• The fiscal black hole: Independent estimates show a universal social care system could cost an extra £17 billion by 2035. It remains unclear whether a 10% flat inheritance levy can generate that level of revenue.
• The valuation nightmare: Moving to an LVT or a proportional property tax requires a massive, complex revaluation of every plot of land in the UK. The government has not explained how it would execute this logistically.
• The fiscal policy paradox: Burnham has promised to honour Rachel Reeves’ strict fiscal borrowing rules and Labour’s pledge not to raise basic Income Tax, VAT, or National Insurance. Economists are highly skeptical about how he will fund his ambitious regional infrastructure projects under these tight constraints.

So, what is potentially next and what should we be mindful of?

• The London and South Property Hit: As property and land values are inflated in London and the South East, a flat proportional tax or LVT would see tax bills soar in these regions – potentially by over £1,000 a year for standard homeowners – while lowering bills in the North.
• Dampened investment and entrepreneurship: Aligning Capital Gains Tax with income tax without adding inflationary protections (like indexation relief) could severely disincentivise domestic business investment. Investors may choose to hold onto stagnant assets indefinitely, locking up market liquidity.
• Risk of capital flight: Wealth management firms and asset managers have already issued warnings that an aggressive lurch toward wealth and asset taxes could trigger a multi-billion pound flight of capital out of the UK as high-net-worth individuals relocate.
• A summer of policy vacuum: With a new leader not expected to be officially in place until September, businesses, homeowners, and financial advisers face months of deep uncertainty without concrete legislative text, complicating long-term financial planning.

Please note: This was put together from previously published discussions, and hearsay – and may change.

To direct specific questions, we will host a live one-to-one briefing clinic online with tax, property and investment specialists – book interest here. 

Our partners include:

1. Claire Shelemay, Tax Advisory at CrownStone Consulting
2. Steve Kent of KHK’s offshore investment fund
3. Jillian Josephson – Partner at Asserson’s Real Estate practice