Commenting on speculation that the Government is considering introducing a Wealth Tax, Fiona Graham, Family Business UK’s Chief Operating Officer said:
“Speculation about the introduction of a wealth tax—whether one-off or annual—comes at a time when the UK should be focused on unlocking growth. For family businesses, the majority of their wealth is tied up in the business itself: in jobs, equipment, buildings, and innovation. These are not liquid assets. A wealth tax would therefore require extracting capital from the business just to meet a tax liability—directly undermining investment, productivity and growth.
“This follows proposed changes to Business Property Relief and Agricultural Property Relief which have already made it harder for family firms to plan for the future. Adding a wealth levy on top seriously risks UK attractiveness for long-term enterprise.
“Family businesses already contribute significantly to the UK tax base – contributing £422 billion in taxes in 2023 through corporation tax, income tax, employment taxes and more. What they need is a tax system that recognises the importance of reinvestment and growth. If this government is serious about growing the economy, it must avoid disincentivising the very firms that are embedded in communities and committed to building for the long term.”