Andy Burnham's potential rule changes as Labour leader could force families to sell inherited properties, according to a financial analyst. The former Greater Manchester Mayor is widely expected to succeed Sir Keir Starmer as Prime Minister, and his advisors are reportedly planning to abolish the capital gains tax (CGT) uplift on death.
What the Proposed Change Entails
Under current rules, when someone dies, their assets pass to beneficiaries with a tax-free uplift, meaning any gains made during the original owner's lifetime are wiped out for inheritance tax purposes. If this uplift is removed, gains built up over the deceased's lifetime would become taxable when the beneficiary later sells the asset, such as a property or shares.
Matthew Jones, Co-Founder and Precious Metals Analyst at Britannia Bullion, told GB News: "Some families could be forced to sell inherited assets if the changes go ahead." He added: "The greatest concern is that families may no longer be able to make decisions based on what's best for them, but instead on what they need to sell in order to meet a tax liability."
Impact on Middle-Income Families
Jones warned that the change could affect more than just the wealthy. "We've already seen how frozen tax thresholds quietly draw more people into higher taxation. If further changes are introduced, more middle-income families could find themselves affected by tax rules that were originally aimed at much wealthier households," he explained.
He elaborated: "Some families could be forced to sell inherited assets if beneficiaries inherit assets that have risen substantially in value over many years." This could include family homes that have appreciated significantly, forcing heirs to sell properties they might otherwise keep.
Advice for Families
Despite the concerns, Jones urged caution. "I don't believe people should panic or make wholesale changes based on newspaper headlines alone. These are proposals, not legislation. However, I do think they should act as a wake-up call," he said.
He advised families to review their estate planning proactively: "Rather than waiting until changes become law, families should use this time to review their estate planning, understand what they own, how those assets are held, and what tax liabilities could arise under different scenarios. Good planning is about giving yourself options before decisions are made for you."
Unintended Consequences
Jones highlighted a broader risk: "One unintended consequence is that families who have spent decades building assets may have fewer choices about how and when they pass that wealth to the next generation." This could disrupt long-term financial strategies and force premature asset sales, potentially reducing the wealth passed down to heirs.
