Trade association British Marine is urging the UK Government to reconsider its plans to drastically cut business property relief (BPR) and agricultural property relief (APR) on inheritance tax (IHT).
In partnership with Family Business UK and other organisations, British Marine said it is calling for a formal consultation on the chancellor’s plans, highlighting, "the devastating consequences of applying a 20 per cent IHT on family-run marine businesses."
An open letter to the chancellor, co-signed by British Marine, outlined the significant risks posed by the proposed policy, including forced sales of multi-generational businesses, job losses, and a reduction in economic activity.
"The chancellor’s decision to impose a 20 per cent inheritance tax bill on businesses, without proper consultation, risks undermining years of hard work, investment, and careful succession planning by family-run marine enterprises," commented Lesley Robinson, CEO of British Marine.
"These businesses, often asset-rich but cash-poor, are a vital part of the UK’s marine industry. For many, selling part of their business to meet this tax burden simply isn’t feasible."
Recent research by CBI Economics estimates that the proposed changes to BPR and APR could reduce economic activity (GVA) by £9.4 billion (US$11.9 billion) over this parliament, lead to over 125,000 job losses, and result in a net fiscal loss to the Exchequer of £1.25 billion.
The changes, set to take effect in April 2026, will impact UK businesses with qualifying assets above the £1 million threshold, including many in the marine sector. British Marine said that it and its partners are advocating for a "genuine consultation" with those family-owned businesses that are now at risk.
