Upcoming changes to inheritance tax rules threaten to cost over 200,000 jobs in family-owned businesses and farms, according to research from Family Business UK and CBI Economics. Starting April, the relief cap at £1 million will greatly affect business continuity, with projections indicating significant drops in investments and workforce numbers. With over half of family firms already suspending investment and nearly 25% halting recruitment, the economic implications could result in a £14.4 billion GDP loss between 2026 and 2029, raising concerns about a long-term decline in the sector's viability.
This research shows unequivocally that family businesses will respond by cutting jobs and investment, massively reducing tax revenue.
The government's decision to cap relief on business and agricultural property is already having significant consequences, with more expected from 2026 onwards.
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