Recent changes to Business Property Relief (BPR), announced in the UK Autumn Budget 2024, have introduced significant adjustments that will take effect from April 2026. Historically, BPR allowed eligible business property to be exempt from Inheritance Tax (IHT). However, the new rules can pose a serious threat to family businesses. BHETA urges our members to write to their MPs using our template letter below to campaign for the reversal of these planned changes to safeguard the future of UK businesses. Our campaign is supporting the lead taken by Family Business UK (FBUK).
The majority of UK businesses are family-run, accounting for 90% of private sector firms and employing 14 million people. Each year, it is estimated that over 85,000 SMEs will transition ownership to the next generation (Source: FBUK). Since its introduction in 1976 as part of the Inheritance Tax laws, Business Property Relief (BPR) has been essential in enabling these companies to confidentially plan for succession. By giving business owners the assurance to focus on growth and compete on a global scale, BPR has become a cornerstone of entrepreneurial support – one that successive governments have consistently chosen to uphold.
Under the new rules, a cap of £1 million will apply to the assets eligible for 100% inheritance tax (IHT) relief. Any value exceeding this threshold will only receive 50% relief. Business assets that were previously fully exempt under inheritance tax relief will now face an effective 20% tax when transferred to the next generation, threatening the financial security of many firms and potentially disrupting intergenerational succession plans.
In such challenging circumstances, it’s likely that the business would have to make difficult decisions to seek external investment, which could undermine the key benefits of being family-owned, such as long-term stability, employee retention, and maintaining a strong sense of tradition and continuity. Other likely serious outcomes could include countless businesses having to sell off assets or shut down entirely, leading to job losses and the diminishing of wealth within communities nationwide.
To better understand the threats posed by upcoming changes, FBUK has compiled a comprehensive research paper linked below.
Download THE Research
BHETA’s support for the FBUK’s campaign, which seeks to retain BPR (Business Property Relief) rules, reflects the association’s focus on ensuring the continued stability and longevity of businesses of all sizes. Family enterprises play a significant role in the UK economy, particularly within the independent retail sector. By advocating for the retention of BPR, BHETA helps to safeguard the financial health of family businesses, enabling them to remain competitive and contribute to local communities and the broader economic landscape.
Will Jones, BHETA Chief Operating Officer, said: “The changes to Business Property Relief (BPR) announced in the budget will hit family businesses hard and BHETA urges all members to get involved and send a letter to your MP. Our template letters make it easy. In a recent survey, 87% of BHETA members were concerned about the recent increases in taxes and national insurance and these changes will be potentially disastrous for family business. Our association works best when our members work together and support each other. Please get involved.”
Alastair Fisher, Managing Director of Taylor’s Eye Witness and a BHETA member commented: “Small businesses and family businesses are the bedrock of the economy. I am part of the third generation of our business, which was founded in circa 1900. As well as having a distribution business we run a factory in Sheffield. I am certain we would not have survived this far had the reliefs now being done away with not been in place. I fully support this campaign, and I’d encourage all BHETA members to use the template letter and write to their MP”.
Get involved – write to your local MP
Businesses are encouraged to get involved by reaching out to local MPs. Use the template letter as a guide to make your voice heard. The template is available in two versions, tailored to the business type of the sender. By sharing your voice and working together, we can strengthen the impact and ensure that family businesses and the policies that support them remain a priority.
Find your local MP
template letter for owners of family businesses
TEMPLATE LETTER for non-family businesses
Campaign update – the Prime Minister calls for case studies from family businesses
Recent lobbying activity has caused significant progress in raising awareness and securing attention from the government. Following the publication of the Open Letter highlighting concerns about changes to Business Property Relief (BPR), the Prime Minister has expressed interest in hearing from individual family businesses. He has requested that these cases be submitted directly to his team, presenting a valuable opportunity for family businesses to have their voices heard at the highest level of government.
Are you a UK-based family business? Use the template below to write to the Prime Minister and copy in your local MP.
DOWNLOAD THE TEMPLATE