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More than 160,000 businesses and family farms have called on the Chancellor to reconsider planned changes to inheritance tax, saying they risk “job losses across the country”.
Rachel Reeves announced in October that from April 2026, inherited commercial properties worth more than £1m will be subject to a 20 per cent tax, having previously been 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 businesses and family farms, they warned the changes would “starve” the economy.
Economic modeling commissioned by pressure group Family Business UK showed that, rather than raising money for the Treasury, the tax changes planned for business property relief could lead to a net loss of £1.25bn for the Treasury and, at the same time, cause the loss of 125,000 jobs.
Anger: An open letter claiming to represent more than 160,000 businesses and family farms warned the changes would “starve” the economy.
‘The changes to inheritance tax are a hard blow. In many cases, those who inherit the business will have no choice but to sell it when the owner dies,” said Neil Davy, director of Family Business UK.
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