Labour's inheritance tax plan for family businesses may cost £1 billion more than it raises, risking job losses.

A report by CBI Economics warns that Labour's proposed inheritance tax changes on family farms and businesses could backfire, costing over £1 billion more than it raises. The changes, starting April 2026, would tax inherited business properties over £1 million at 20%, potentially leading to 125,000 job losses and reducing overall tax revenues. Family Business UK and 32 trade associations are lobbying Chancellor Rachel Reeves to reconsider, citing concerns that the measures could harm economic activity and force businesses to sell up.

December 16, 2024
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