Inheritance tax relief ‘will not be cut for family businesses’

Changes to inheritance tax will not be made for family businesses, according to exchequer secretary David Gauke, despite a report recommending the removal of business property relief (BPR).

Speaking at a meeting with UK lobby group the Institute for Family Business, he explained the Office of Tax Simplification has not called for amendments to be made to BPR, Campden FB reports. “BPR needs to be retained in full as its removal would have a devastating impact on growth of successful family businesses and on investment in the sector, Grant Gordon, the IFB’s director-general, said in a statement. He added it has to be retained as it is, due to the fact its removal would have a “devastating” impact on growth of successful family businesses.

A report in November by the London School of Economics for the UK’s Department for Business, Innovation and Skills called for the relief to be removed. HM Revenue and Customs notes most estates do not have to pay inheritance tax because they are valued at less than the £325,000 threshold.