![\"James](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/12\/James-Dyson-inheritance-tax.jpg\")
\t\tDyson said he would have to sell his firm unless inheritance tax laws changed\t<\/p>\n\t\t\tFriday 06 March 2026 12:00 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tThursday 05 March 2026 10:31 pm\n\t<\/p>\n
\t\tDyson said he would have to sell his firm unless inheritance tax laws changed\t<\/p>\n
Almost all of Britain\u2019s family businesses still face major changes to inheritance tax despite a government concession to limit the damage of its decision to end the carve-out for family-run firms.<\/p>\n
According to a fresh poll, just one in 10 business owners believe they will not be affected by changes to inheritance tax first announced at Labour\u2019s maiden Budget, even though much of it was watered down a year later.<\/p>\n
The study, which polled over 500 bosses at family businesses, found that 55 per cent of those with between 10 and 49 employees found the changes coming in next month will still have a \u201cmaterial impact\u201d on the operations of their firm. For those with between 100 and 250 staff, that figure rose to 64 per cent.<\/p>\n
\u201cAt a time when the UK desperately needs the economy to grow, this is the wrong policy at the wrong time,\u201d said Neil Davy, chief executive of Family Business UK, which commissioned the poll. \u201cWe are ready to work constructively with government to achieve a positive outcome that prevents further investment and jobs being lost.\u201d<\/p>\n
At its maiden Budget in 2024, the government chose to abolish a decades-old carve-out from inheritance tax that had been enjoyed by family businesses and agricultural property. Ministers argued the reliefs, which allowed both business owners and farmers to pass profession-related assets to their offspring tax-free, were being abused by super-rich land or entrepreneurs as a means of avoiding the death levy.<\/p>\n
\t\tInheritance tax unease despite U-turn<\/p>\n
But a year later, the Treasury chose to water down their changes to the reliefs<\/a> \u2013 known as Agricultural Property Relief and Business Property Relief \u2013 after fierce backlash from the farming and business communities. As part of the changes, ministers raised the threshold at which the discounted 20 per cent inheritance tax rate kicked in from \u00a31m to \u00a32.5m, with married couples allowed to transfer unused allowances, effectively allowing a total of \u00a35m. <\/p>\n Environment minister Emma Reynolds hailed the retreat, saying it showed the government had \u201clistened closely to farmers across the country\u201d. <\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tInheritance tax haul hits another record<\/a><\/p>\n Some two fifths of family business owners believe the amendments are positive, according to the Family Business UK poll<\/a>, but almost a third (31 per cent) say they will have no impact on their business. The new inheritance tax regime is due to kick in in April.<\/p>\n Lizzy Rudd, chair of Berry Bros. & Rudd, Britain\u2019s oldest fine wine and spirits merchant, said; \u201cAs a 327-year-old family business, we have always strived to be stewards for future generations. <\/p>\n \u201cAs a B Corp we also place great value on employing people, considering the wider community and the environment in all that we do. How are we expected to continue to build value for the long term when our children will one day have to pay inheritance tax on this value \u2013 a value which is on paper and not in our pockets unless business assets or the business itself is sold?\u201d<\/p>\n