APR/BPR Update

It is a while since we shared an update on the ongoing changes/lobbying activities with regards the changes announced in the last Budget and we have been asked for an update so here we go. 

We continue to speak to as many people as possible to share the family business perspective and impact of the changes to inheritance tax rules and in particular APR and BPR but sadly we are not in a position to offer much in the way of positivity at this moment in time.  Sorry.

The farming community continue to make lots of noise and plan more activity but they too cannot reveal any major changes to date.

That said, the family business community needs to continue to make its voice heard otherwise the fear is that it will be assumed that there is acceptance of the changes and they could remain, irrespective of which party is in power, and there remains a belief amongst many that the issue is a 'Family Farm Tax' issue and does not affect the broader family business community which is clearly the case.

We continue to write letters, emails and have conversations and there are ongoing activities that you may wish to be involved with as outlined below:

Letter to the Chancellor

Many of you forwarded your names and consent to sign a letter from the family business community, co-ordinated by GAP Group and supported by Family Business United, which ended up with over 200 signatures and this has now been submitted to the Chancellor.  Details can be found here

Judicial Review

A group of family farmers and family business owners have filed for a Judicial Review against the proposed changes to inheritance tax.  The lead claimant is Tom Martin, a sixth-generation farmer near Peterborough.  He is joined in the claim by his father, George Martin, and a representative association, formed by and for farmers and family-owned businesses who rely on APR/BPR to preserve business continuity, ensure food security, and sustain the UK’s rural economy and family businesses which form the backbone of the UK's economy. 

Law firm Collyer Bristow LLP have conduct of the claim, with representation from leading counsel, Aparna Nathan KC.

This Judicial Review is based on four principal grounds:

• Breach of Duty to Consult: The Treasury is under a public law duty to consult before major tax reforms and a failure to do so may be unlawful.

  
  

• Breach of Legitimate Expectation: Repeated Government policy documents have promised consultation. A failure to follow through once taxpayers have place reliance on a promise to their detriment may be held to be unlawful.

  
  

• Failure to follow Policy:  The failure by a public body to follow a policy that it has lawfully created is unlawful.  The Government’s failure to follow its own policy to consult on major tax changes is said by the Claimants to be unlawful.

  
  

• Breach of Principle of Legality (fairness): The duty to act fairly is an important duty imposed upon any public body. The lack of transparency, absence of impact assessments, and disregard for sector-specific vulnerability (e.g., tenant farmers, elderly landowners) breaches the principle of legality.

This case is strengthened by the EFRA Select Committee’s recent findings, which expressly called for consultation and highlighted the risks to family farms and rural resilience.

A crowdfunding campaign has been set up and you can find out more about the campaign and donate or share the link to support it here

We are in touch with the family business owners who are actively involved in the campaign so if you would like to speak to them directly to find out more about the campaign and getting involved please do get in touch and we will be happy to make the introduction.

Pension Petition

We have also been made aware of a pension petition that is now being conducted.  The Government are introducing inheritance tax to pension funds & death benefits from April 2027. When you die this may now result in a disproportionate and unfair double taxation on beneficiaries (income tax and inheritance tax) which we think results in a disincentive to funding a pension.

The petition seeks to force a debate on the issue with the aim of stopping the double tax (IHT & Income Tax) of pension funds & death benefits.  Once 10,000 signatures are reached the Government has to respond and 100,000 signatures would see it considered for debate in Parliament.  You can find out more and sign the petition here

Our Own Family Business Survey

In order for us to continue to write about the challenges associated with family businesses and the family business agenda we need data and statistics.  To that end, our 2025 family business survey is short and to the point and should take less than 5 minutes to complete with a question about what you would like the Government to consider changing. 

Obviously we know some of the answers but statistics in a survey provide evidence to create banners and write content to continue to amplify the voice and raise awareness of the challenges.

If you have not done so already, please complete the short survey, and encourage others to do so here

Politicians

We know from the event at the London Palladium in December where I was co-hosting The BPR Summit with Olly Harrison and the farmers that Kemi Badenoch agreed that the Conservatives would reverse the APR and BPR tax changes should they get back in to power but we are yet to find out if the other major parties will do the same so keeping pressure on local MP's is important.

New Business Minister

With the recent Cabinet reshuffle there have been changes to both the Business Secretary and the Farming Secretary. From a family business perspective it is important to raise awareness of the issues with the newly appointed Rt Hon Peter Kyle MP who is the new Secretary of State for Business. Resend any letters previously sent to the Minister in order to keep the issues around APR and BPR firmly on the agenda.

MP's

We have spoken recently to a former MP who shared his thoughts on continuing to make noise and shared the following recommendation.  Everyone opposed to these changes should use https://findyourmp.parliament.uk and enter every postcode they are linked to like the postcode of their home and business address and any depots/business locations beyond head/registered office.   We know that many of you have contacted your MP but if they have yet to respond, do so again and continue to do so until they respond.

Wherever the MP comes up as Labour e-mail the MP and politely request to meet them – if your home MP request to meet at their next constituency advice surgery and if they’re the MP for a business postcode request to meet at the premises of your business in their constituency. 

Meeting Labour MPs is the chance to tell them that this is a massive mistake and to urge them to lobby Starmer and Reeves to reverse the appalling decisions they have made given the devastating impact that the changes will have as quantified in the CBI report published earlier this year.  The more the local MP is concerned about the impact on their own constituency and the noise within it, and fear of losing voters at the next election, the more they may lobby for change.  

CBI Findings:

• The study conducted by independent consultancy CBI-Economics, is the largest study yet into how the family business and farming sectors will respond to measures announced in the Budget. More than 4,000 businesses and farms across the UK took part in the research.
  

• The findings reveal that more than half (55%) of family-owned businesses and just below half (49%) of family farms have paused or cancelled planned investments since the budget and will continue to cut both investment and jobs before April 2026 when the changes to BPR and APR come into force.
  

• In total, the research finds that the changes to BPR and APR will result in more than 208,000 jobs being lost by the end of the Parliament and GVA (a measure of economic value) being reduced by £14.9 billion.
  

• Taken together the loss of jobs and GVA directly from the activities of family businesses and farms, their employees and their supply chains, will produce a net fiscal loss to the Government of £1.9 billion by the end of the Parliament.
  

If you are aware of any other activities that we should support or provide details to members to make them aware please do let us know. 

We continue to do our best to represent and promote the sector but I think it is fair to say that "few people of decision making authority or responsibility seem to want to consult or listen at the moment" but it is important that we continue to raise the family business flag and do all we can to challenge the decisions, and  support the sector where possible too.