Family Owned Builders Still at Risk from Business Property Relief Levels
According to the Government itself, more than 80% of local and regional building companies are still family owned and very much at risk from Inheritance Tax changes announced in the Autumn 2024 budget.
Farmers have been highly visible in their campaigns over the last year or so, but it is less well known that all family businesses face exactly the same existential threat, including many housebuilders and their suppliers.
While the Government’s recent U-turn, under pressure from farmers, to raise BPR from £1m to £2.5m (with up to £5m transferrable between spouses) may have helped smaller firms, it has left those who have built their family firm into a medium sized business still facing the threat of having to sell a large proportion of their company in order to pay the tax when a family member dies.
These businesses may be asset rich in terms of property and equipment but are often cash-poor and are already taking a bashing from one of the worst new-build markets any of us can remember.
Aren’t housebuilders facing enough challenges?
Discuss.
James Scott
MD
