The BMF (Builders Merchants Federation), is urging the government to reverse proposed changes to Business Property Relief (BPR) and has reiterated concern that the measures may have the unintended consequence of wiping out what they were aiming to achieve.
‘Taxing Futures,’ a new report from Family Business UK (FBUK), sets out regional and local impacts of the policy, highlighting the East and West Midlands as one of the three regions likely to be hardest hit, alongside the East of England.
James Hipkins is Regional Chair of the BMF in the East and West Midlands. He said: “This report highlights the real concerns our members have about BPR.
“It is particularly concerning to see the Midlands referenced as one of the areas likely to be hardest hit.”
The ‘Taxing Futures’ report was commissioned by FBUK, supported by a consortium of trade associations, including BMF, and conducted independently by CBI Economics.
It captures insights from 4,147 family businesses and farms on the measures planned to mitigate changes to Business Property Relief and Agricultural Property Relief.
CEO John Newcomb said: “The building materials sector is absolutely critical to the lifeblood of the economy in the UK, but we are hearing across the industry that the changes in inheritance taxation could limit the future of the sector, with many private and family businesses across our membership reporting back that the impact of Business Property Relief will damage enterprise.
“Most BMF members are now reviewing their sales and trading forecasts for the next two years and looking at investment decisions, stock levels and staffing numbers.
“We have previously urged government to ensure these measures do not have the unintended consequence of wiping out what they were aiming to achieve.
“Since Business Property Relief was introduced by a Labour government in 1976, it has protected numerous private, family-owned enterprises from being sold or broken up to pay Inheritance Tax.
“We urge the PM, Chancellor and Ministers to review the situation and think again about the proposals.”
According to the Centre for Economics and Business Research, family firms account for 96% of firms in the construction sector, which encompasses the building materials supply chain.
The ‘Taxing Futures’ report was commissioned by FBUK, supported by a consortium of trade associations, including BMF, and conducted independently by CBI Economics.
It captures insights from 4,147 family businesses and farms on the measures planned to mitigate changes to Business Property Relief and Agricultural Property Relief.
A copy of the report is available to download here