Will Andy Burnham’s Energy Bills Plan Cost Landlords More in CGT?

For landlords, the energy saving isn't the point. What matters is how any bill cut gets paid for and one option being discussed is higher CGT on assets and second homes. This article sets out what's actually been proposed and what's still speculation. It doesn't predict a Budget, and it treats current tax figures as HMRC law, not Burnham policy. 

What are Andy Burnham's Proposals?

The first comes from the CBI and Energy UK. Their report argues that business energy costs should be cut by taking some charges off bills including the Renewables Obligation and covering the shortfall through general taxation instead. They put the saving at around 20%. 

The second comes from reporting on Burnham's own thinking. He hasn't published a full tax plan, but the reports suggest he may back shifting some energy levies into the tax system. The options floated include higher taxes on gains from shares, second homes and other assets.

Where would the Money Come From? 

Removing charges from energy bills does not remove the cost. It simply shifts the cost elsewhere. 

For property owners, the real question is whether the government would raise the difference through Capital Gains Tax on second homes or rental property. If it does, an energy policy quietly becomes a tax rise for some investors. 

Which Levies are Involved? 

Not every charge on an energy bill is a tax collected by HMRC (His Majesty's Revenue and Customs). Several are energy schemes run by Ofgem (the Office of Gas and Electricity Markets), which is a different thing entirely. 

So, several of the charges in the discussion are Ofgem schemes, not taxes. Removing them from bills doesn't make the underlying cost disappear, someone still has to pay for the schemes, and that someone is the Treasury. 

The funding could come from general taxation. But right now, there is no confirmed plan to raise it through Capital Gains Tax or higher taxes on property investors. Anyone telling you otherwise is guessing.

The Energy Saving may be Smaller than it Sounds 

The Burnham's proposals mostly target businesses and heavy industry. For most residential landlords, the direct saving is likely to be modest at best. 

If you pay the energy bills on a let property, you might see something indirectly  but it hangs on your contract type and whatever the final policy actually is. And for most buy-to-let investors, energy was never the number that kept them up at night. 

Tax is the part to watch 

The real question isn't the saving. It's who pays for it. 

Capital Gains Tax has come up as one way to fund cheaper energy bills —nothing confirmed, but it's the option that should have property investors paying attention, because CGT is where the money will come from if it comes from anywhere. 

Here's where the rates stand for 2026/27. Individuals pay CGT at 18% or 24%, depending on income and the size of the gain. Those rates apply when you sell a second home, a buy-to-let, or an inherited property that has risen in value. 

The annual allowance is £3,000 and it has been cut repeatedly in recent years, so more of every gain is now taxable. Where CGT is due on a UK residential sale, you normally have to report and pay within 60 days of completion. Miss that window and HMRC charges penalties and interest. 

The higher residential rate fell from 28% to 24% on 6 April 2024. It hasn't moved since. But "hasn't moved yet" and "won't move" are not the same thing which is exactly why this proposal is worth watching. 

On this sale, moving the rate from 24% to 28% adds £3,720 for doing nothing differently. Same property, same gain, bigger bill. 

The 28% figure is only there to show the shape of the risk. It isn't current law and it isn't a confirmed proposal. And your own number would move with the details: your income, your share of the property, what costs you can deduct, any losses to set against the gain, and any reliefs you qualify for. 

Checklist: What Property Investors Should Do Now

• Check whether a property genuinely qualifies as your main residence for Private Residence Relief. If you treat more than one property as a home, there may be a valid main-residence nomination to make and a time limit for making it. 
• Keep the paperwork. That means the purchase price, allowable buying and selling costs, and receipts for qualifying improvements. Watch this one: ordinary repairs and maintenance don't reduce a CGT gain, even though genuine improvements do. 
• Before completing a UK residential sale, work out whether the 60-day reporting-and-payment rule catches you. Late reporting or payment means interest and penalties, and it's an easy deadline to miss. 
• Go by official government announcements, not press reports. Confirm the actual rule and its effective date before you act. 
• Take professional advice before you bring a sale forward or push it back. A rushed move can create more tax, legal and transaction cost than it saves which is the opposite of the point. 

Frequently Asked Questions 

Conclusion  

For landlords and second-home owners, one thing matters: keep confirmed tax rules and political speculation in separate boxes. The energy saving may come to little if the proposals stay aimed at business bills. A Capital Gains Tax change would hit harder but nothing official has been published. 

So don't act on headlines. Keep clean records of your purchase price, allowable costs and improvements, check whether Private Residence Relief applies, and know whether a 60-day CGT report is due before you complete a sale. Get that groundwork done now and you can move the moment the rules change rather than scrambling once they already have.