Key facts
- John Healey has been urged to drop a tax on inheritances, referred to as a "death tax."
- Business leaders claim the tax is causing family firms to lose out to overseas investors.
- Changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) introduced by Labour in the 2024 Autumn Budget are causing distress to family farmers.
- Farmers are curtailing capital investment, diverting funds to save for future inheritance tax burdens.
- 55% of BPR-affected and 49% of APR-affected businesses have paused or cancelled planned investments.
- Almost one in four family farms and businesses have reduced headcount due to Labour’s inheritance tax changes.
John Healey has been urged by business leaders to drop a tax on inheritances, referred to as a "death tax," which they claim is hindering family businesses and leading to a loss of investment. The call comes as MPs have also pressed for changes to inheritance tax rules.
According to a letter signed by over 100 MPs, changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) introduced by Labour in the 2024 Autumn Budget have caused significant distress to family farmers. The MPs warned that these changes are forcing farmers to curtail capital investment, with funds being diverted to save for future inheritance tax burdens rather than being reinvested in commercial development.
Investment data cited in the letter indicates that 55% of BPR-affected and 49% of APR-affected businesses have paused or cancelled planned investments. Furthermore, almost one in four family farms and businesses have reduced their headcount as a direct consequence of Labour’s inheritance tax changes.