More than 160,000 family businesses and farms have called on the Chancellor to reconsider planned changes to inheritance tax, saying they could cause job losses across the country’.
Rachel Reeves announced in October that from April 2026, business assets worth more than £1m will be taxed at 20 per cent before they are exempt from duty. This also applies to agricultural land.
But in an open letter signed by 32 trade groups which represent more than 160,000 family businesses and farms, they warned that the changes would ‘starve’ the economy.
Economic modeling released by the group Family Business UK showed that instead of raising money for the Treasury, planned tax changes to help business assets could result in £1.25 billion for the Exchequer and 125,000 jobs will be lost.
Anger: An open letter claiming to represent more than 160,000 family businesses and farms warned the changes would ‘starve’ the economy.
‘Changes to inheritance tax are a sledgehammer. In many cases, those who are given a business have no choice but to sell it when the owner dies,” says UK Family Business CEO Neil Davy.
DIY PLATFORMS Investing
AJ Bell
AJ Bell
Flexible and ready-made accounts
Hargreaves Lansdowne
Hargreaves Lansdowne
Free financial services and investment ideas
interactive entrepreneur
interactive entrepreneur
Investment costs from £4.99 per month
Saxo
Saxo
Get £200 back on shopping fees
Trade 212
Trade 212
Free work and no deposit
Affiliate link: If you download a product This Money earns a commission. These prices are selected by our editorial team, because we think they are worth celebrating. This does not affect our independence.
