Family Business UK, the trade body for family-owned businesses, has warned that further changes to inheritance tax in the forthcoming Budget would be “hugely damaging.”

Its research shows that such policy changes would likely cause business owners to reduce investment and cut jobs. The projected economic impact includes more than 200,000 job losses, a reduction in economic activity (GVA) by £15bn, and a fall in tax receipts by £1.9bn before the end of this Parliament.

“Speculation about further changes to inheritance tax in the Budget are hugely damaging,” the organisation cautioned. “Any moves to restrict lifetime gifting will have a huge impact on family businesses, already reeling from the planned changed to BPR and APR announced in last year’s Budget and represent yet another hurdle to their succession planning.”

The trade body urged Government to hold a formal consultation so that any policy changes can achieve their stated objective of raising tax receipts, whilst continuing to protect family businesses. 

With many amusements businesses kept in the family, an increase in inheritance tax would represent yet more rising costs for a sector that relies on a review of stakes and prizes to increase its prices – and one that doesn’t happen nearly enough.