Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Burnham-Backed Proposals Could Lead to Double Tax on Inherited Homes

Middle-income homeowners could face higher tax bills on inherited property if proposals to scrap the capital gains tax (CGT) uplift on death are adopted, according to Property Industry Eye. The proposals are reportedly being considered by allies of Andy Burnham as part of a broader review of wealth taxation.

The reported reforms would change the way inherited assets, including property, are taxed. Critics have warned that these changes could result in families paying both inheritance tax and capital gains tax on the same property, which has led to concerns about a so-called “family home death tax.”

Burnham’s allies are understood to be examining potential changes to CGT as the UK’s overall tax burden remains at its highest level in decades. Louise Haigh, identified as a close ally of Andy Burnham, has recently stated that any review of the tax system should “at a minimum” consider reforming the CGT uplift on death.

For letting agents and inventory clerks, these potential changes could impact the property market by affecting the financial implications for clients inheriting residential property. The proposals are part of ongoing discussions and no final decisions have been reported.