July 2026 Newsletter | Cylchlythyr Misol Gorffennaf 2026
1. With Andy Burnham looking set to become Prime Minister, what tax changes (rises) could his government introduce? Press speculation has included the following:
a) A type of property/wealth tax on homes? Ideas have included an annual property tax of 0.48% of a home's value, or perhaps a tax based on the value of the land itself.
b) Alignment of Capital Gains Tax rates (currently 18% or 24%) to income tax rates, potentially only for gains from the sale of residential property?
c) Higher top rate of income tax?
d) A cut in pension tax relief for higher earners?
The press believe that Rachel Reeves is highly unlikely to remain as Chancellor in a new Government, therefore all eyes will be on the next Budget due to take place later this year.
2. Despite the upcoming changes at the top level of Government, there were a raft of unexpected tax announcements on 23 June, including:
§ Stocks & Shares ISAs: a new tax charge of 22% on interest paid on cash deposits held within Stocks & Shares ISAs. To encourage people to invest in stocks & shares, under-65s will only be able to pay in up to £12,000 a year in cash ISAs from April 2027 onwards.
The Government were concerned that people would instead hoard cash in their Stocks & Shares ISAs, and so will introduce the tax charge to discourage this behaviour.
§ Timing of self-assessment tax payments: currently, individuals pay their self-assessment tax bills by 31 January and 31 July each year. The Government have announced a 'consultation on the implementation of more timely payments for self-assessment'. This could pave the way for quarterly payments of tax in the future - watch this space!
Ask Huw & Aled
Q: A tenant failed to register for council tax, leaving me to deal with debt collector letters before the council eventually traced them and recovered the outstanding balance. Is there anything I could have done to prevent this? Surely I'm not the only landlord affected by this?
A: This is an incredibly difficult situation. Some practical suggestions to reduce this risk include:
§ Tenancy agreement: ensure your agreement clearly states the tenant is responsible for council tax and other utilities. Consider including a clause which allows you to share tenant information with 'relevant third parties' such as councils, for the purposes of council tax.
§ Notify the council: write a letter to the council informing them of tenant changes (include the tenant's full name, start and end date of the tenancy and the property address)
§ Keep accurate records: retain copies of tenancy agreements and inventories, as these can help demonstrate who was occupying the property if liability is ever disputed.
Remind tenants to register: although it is the tenant's responsibility to register for council tax, a simple reminder at the start of the tenancy can help avoid unnecessary issues later on.
