FBUK responds to Finance Bill consultation

October 8, 2025

Family Business UK has reiterated its concerns over the changes to Business Property Relief (BPR) and Agricultural Property Relief (APR), warning of the consequences of the proposed policy changes on investment, succession planning, and the long-term success of family-owned enterprises.

In evidence submitted to the House of Lords Finance Bill Sub-Committee, FBUK warns that the policy reforms risk undermining Britain’s family business sector with many firms still ill-prepared for the policy change.

In its submission FBUK warns:

  • the policy risks having a chilling effect on the UK economy – which could result in 208,000 full-time jobs lost, a near £15billion reduction in GVA and a net fiscal loss to Government of almost £2bn in this Parliament.
  • of serious concerns around valuations and capacity within HMRC
  • the 6-month window for reporting and paying IHT is unrealistic for family businesses committed to long-term investments – creating a liquidity crisis among family firms
  • the timetable for implementing the reforms is too aggressive and lacks the necessary transitional provisions to protect family businesses.

Matt Jaffa, Policy and Public Affairs Director at FBUK said:

We have grave concerns about the changes to this pivotal policy for family businesses, and the speed with which the Government plans to implement them.

Family business often need years, not months, to rearrange their affairs. Implementing these policy changes in April 2026 creates a cliff-edge for family-owned firms and has enormous implications for the decisions they are being forced to take.

Outside of a technical consultation on Trusts, the wider reforms to BPR and APR were announced without any meaningful engagement with family business owners leading to widespread confusion, anxiety and mistrust.

A transparent and inclusive consultation process is now essential to ensure that tax policy supports – not undermines – the long-term success of family businesses. So, we are calling on the Chancellor to meet with us, our Members and stakeholders and co-design a policy that balances fiscal responsibility with economic sustainability.

FBUK Members can read our full submission to the House of Lords Sub-Committee in the Policy area of our website.