Family businesses threatened by new inheritance tax hikes

In late 2023, the UK government announced tax proposals that could seriously impact family-run businesses in Scotland. These businesses, known for their heritage and reputation, include well-known names like Walker’s and Tunnock’s. The proposed changes involve caps on business property relief, making it more costly for successful family enterprises to transition ownership to younger generations. This has raised significant concerns, especially among the agricultural sector, which has voiced strong opposition to the government’s plans. The impact of these tax reforms is especially pronounced in sectors where independence and family ownership are valued, as the financial burden of inheritance tax could threaten the survival of these long-established firms. Farmers and business owners have described the government’s proposal as a crisis, highlighting how it could disrupt the legacy of family businesses that have contributed significantly to the Scottish economy and identity.