Understanding how new inheritance tax rules could destabilise family businesses, and what to do about it.

Inheritance tax sounds like it targets the ultra-rich. But look closer. The ones caught in the crosshairs aren’t billionaires with golden parachutes. They’re family firms—those that reinvest, employ locally, and think in generations, not quarters. New changes to Business Property Relief (BPR) may sound technical. But the effects? They’re personal, structural, and dangerously shortsighted.

When Policy Gets Personal

The government says capping BPR at £1 million ensures fairness. But for family businesses, that £1 million is tied up in stock, warehouses, and payroll. It's not cash. It's the engine of daily operations.

As Neil Davy of Family Business UK warns:

“This will fundamentally remove incentives... and threaten their viability.”

These aren't firms swimming in surplus.

They're farms, factories, and fifth-generation shops.

And the bill? It hits when succession’s already a delicate moment.

Voices From the Front Line

William Lees-Jones, JW Lees Brewery:

“We’d have to divert funds from reinvestment. That hits growth, jobs—everything.”

Stuart Paver, Pavers Shoes:

“Now I must spend time and money avoiding a burden that shouldn’t be there at all.”

Lizzy Rudd, Berry Bros. & Rudd:

“We’re being forced into short-termism. That’s not how 326-year-old businesses survive.”

The Economic Cost

The CBI estimates:

125,000 jobs lost

£9.4 billion knocked off UK economic growth

A £1.3 billion loss in tax revenue by 2030

Because when family firms shrink, it’s not just shareholders who feel it.

It’s the suppliers. The apprentices. The communities.

Frequently Asked Questions

Q: What is Business Property Relief (BPR)?

A: It’s a tax relief allowing family businesses to pass assets without crippling inheritance tax. It was designed to keep businesses running across generations.

Q: Why does the new cap matter?

A: £1 million may sound large but for most firms, that’s less than their basic operating assets. It forces families to sell off parts of the business just to pay the tax.

Q: Isn’t inheritance tax meant to stop wealth hoarding?

A: Yes, but most family businesses aren’t hoarding. They reinvest. They create jobs. They build resilience. This policy hits them hardest.

Q: Is this just about large firms?

A: Not at all. Small and mid-sized family firms are often the most vulnerable. They can’t absorb sudden tax demands without cutting back.

Q: What can I do about it?

A: Start by understanding how it affects your own business. Then join others in pushing back because policy shifts when enough people speak.

Call to Action

Take 3 minutes to understand the facts Safeguard your future.

✅ Protect the business your family built

✅ Avoid short-term decisions that damage long-term value

✅ Revisit the FAQs any time to stay clear-headed in the noise

Because this isn’t about loopholes or luxury.

It’s about the quiet lifeblood of our economy:

Family businesses that stay, invest, and care.

Let’s make sure they're still standing tomorrow.