“Scrapping BPR could be catastrophic” FBUK tells Forbes

Posted on September 2, 2024September 12, 2024 by Abbie-Louise

“Scrapping BPR could be catastrophic” FBUK tells Forbes.

Family Business UK has warned of the potential unintended consequences of scrapping Business Property Relief (‘BPR’) on family businesses.

Speaking to Forbes magazine, FBUK CEO Neil Davy said: “capping or scrapping BPR without fully understanding the consequences would be catastrophic for these [family] businesses, the sector, and the wider UK economy.”

Ahead of the Autumn Budget (30 October), the article in Forbes explores possible tax changes that have been mooted for review by the Government, including BPR.

Family Business UK has repeatedly talked about the importance of retaining BPR as part of a supportive policy environment that incentives family businesses to plan and invest for the long term.

A campaign calling on policymakers, MPs and supporters to Back Family Businesses, which was launched by FBUK this summer, asks government to retain BPR and give family-owned firms the support they need to thrive.

Commenting in Forbes, Neil Davy continues: “Business Property Relief is crucial to the long-term outlook and prosperity of family businesses, and the family business sector overall. BPR enables family businesses to be passed to the next generation without the business incurring costs which would otherwise be used to invest in training, job creation, new products and services or expansion into new markets.”

As the Back Family Businesses campaign continues, Family Business UK will keep members up to date with our activity. For regular member updates, and to read our magazine, ensure you sign up, and contact the team with any questions or queries.

FBUK Warns of Changes to Business Property Relief (BPR)

Posted on July 3, 2024July 22, 2024 by Abbie-Louise

FBUK Warns of Changes to Business Property Relief (BPR)

Family Business UK has responded to reports that Labour is considering changes to Business Property Relief, warning of the potential consequences of scrapping or amending BPR.

Speaking to The Mail about reported changes to the Inheritance Tax regime, FBUK Chair Sir James Wates said: “This puts hundreds of thousands of jobs at risk in a key part of the economy.

“The relief [BPR] allows companies to plan for the long-term. It raises the question of why someone would put themselves through running a business – as you live and breathe it if your name is above the door – if you face crippling tax bills.”

Reported changes

The Mail, and other media outlets have reported in recent weeks that the Shadow Chancellor Rachel Reeves is under pressure from others in Labour to raise Capital Gains Tax (CGT) rates as part of an autumn Budget statement – should Labour form the next government.

These proposals also reportedly include changes to Inheritance Tax including making it more difficult to ‘gift’ money and assets.

Steve Rigby, FBUK Board Director and Co-CEO of Rigby Group added: “Whoever forms the next government must avoid policies with unintended consequences that put our businesses at risk. Family businesses are here for the long term.

“Up and down the country we support the communities and local economies in which we are rooted.

“Successive governments, for almost 50 years, have retained Business Relief, which forms part of the Inheritance Tax regime, knowing that it is key to unlocking the potential for investment, growth and jobs among family businesses.”

The importance of family businesses

Ninety percent of all private firms in the UK are family businesses. That’s 4.8 million companies employing millions of people and contributing more than £200 billion every year in taxes.

Our Manifesto sets out what FBUK wants to see from a new government. We would urge you to download it and share it with your local candidates in the General Election – and again with whoever becomes your local MP.

You can find information about all your local candidates, and how to contact them, at the Electoral Commission.

Back Family Business – Assets

FBUK has also produced a series of infographics to highlight the importance of the family business sector to the UK economy.

You are welcome to download these infographics to use on social media channels to help us spread the word about the importance of the family business sector.

We just ask that you tag us in any posts, so we can re-share, on LinkedIn and Twitter/X.