Family businesses are calling on Chancellor to reconsider inheritance tax changes
More than 160,000 family businesses and farms have called on the Chancellor to reconsider planned changes to inheritance tax, saying it risked ‘job losses across the country’.
Rachel Reeves announced in October that inherited business properties worth more than £1 million will be taxed at 20 per cent from April 2026, after previously being exempt from the tax. This will also apply to agricultural land.
But in an open letter signed by 32 trade associations claiming to represent more than 160,000 family businesses and farms, they warned the changes would ‘starve’ the economy.
Economic modeling commissioned by lobby group Family Business UK shows that, rather than raising money for the Treasury, planned tax changes aimed at easing corporate assets could result in a net loss of £1.25 billion for the Treasury, while also losing 125,000 jobs.
Anger: An open letter claiming to represent more than 160,000 family businesses and farms warned the changes would ‘starve’ the economy
‘The changes to inheritance tax are a blow. In many cases, those who inherit the business will have no choice but to sell it when the owner dies,” says Neil Davy, head of Family Business UK.
DIY INVESTMENT PLATFORMS
A. J. Bell
A. J. Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund trading and investment ideas
interactive investor
interactive investor
Invest for a fixed amount from € 4.99 per month
Sax
Sax
Get £200 back in trading fees
Trade 212
Trade 212
Free trading and no account fees
Affiliate links: If you purchase a product, This is Money may earn a commission. These deals have been chosen by our editors because we believe they are worth highlighting. This does not affect our editorial independence.