More than 160,000 family businesses and farms have called on the Chancellor to rethink planned changes to inheritance tax, saying it risked ‘job losses right across the country’.
Rachel Reeves announced in October that from April 2026, inherited business properties worth over £1m will be taxed at 20 per cent having previously been exempt from the duty. 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-owned businesses and farms, they warned that the changes would ‘starve’ the economy.
Economic modelling commissioned by lobbying group Family Business UK showed that rather than raising money for the Treasury, the planned tax changes to business property relief could result in a net loss of £1.25billion for the Exchequer while also causing 125,000 job losses.
Anger: An open letter claiming to represent more than 160,000 family-owned businesses and farms warned that the changes would ‘starve’ the economy
‘The changes to inheritance tax are a hammer blow. In many cases, those inheriting the business will have no alternative but to sell up when the owner dies,’ said Family Business UK head Neil Davy.
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