IHT blow to SME's

IHT hitting many family businesses beyond farming
City AM reports on the impact of inheritance tax (IHT) changes on family businesses beyond the farming sector. While farmers have received significant media attention, they represent less than 5% of the UK's family businesses, which account for 93% of all private-sector enterprises. The upcoming reforms, effective from April 2026, will cap Business Property Relief and Agricultural Property Relief at a combined limit of £1m, exposing many small businesses to a 20% IHT rate. Lucy Williams, managing partner at Jackson Stephen, illustrates this with the example of Redbox Limited, a small manufacturing firm that could face a £200,000 IHT bill, jeopardising over 100 jobs. She argues that Labour's claims that these tax hikes "won't affect working people" are misleading, as taxing businesses ultimately harms job creation. Williams calls for a raise in the IHT relief threshold to £5m and urges family businesses to advocate for their interests, stating: "If Labour refuses to listen, business owners must make themselves impossible to ignore."