British Marine is urging the 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 is calling for a formal consultation on the Chancellor’s plans, highlighting the devastating consequences of applying a 20% IHT on family-run marine businesses.
An open letter to the Chancellor, co-signed by British Marine, outlining the significant risks posed by the proposed policy, including forced sales of multi-generational businesses, job losses and a reduction in economic activity.
Lesley Robinson, CEO of British Marine, said: “The Chancellor’s decision to impose a 20% inheritance tax bill on businesses, without proper consultation, risks undermining years of hard work, investment, and careful succession planning by family-run marine enterprises. 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 over this Parliament.
- Lead to over 125,000 job losses.
- 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 and its partners are advocating for a genuine consultation with those family-owned businesses that are now at risk and are critical to the UK’s economy and employment landscape.
British Marine is proactively supporting its members as they navigate the potential impact of the proposed inheritance tax reforms. Recognising the significant challenges these changes would bring; the organisation is working closely with Family Business UK and other partners to amplify concerns and ensure the voices of family-owned marine businesses are heard at the highest levels of government.
In addition to lobbying the chancellor, British Marine is supporting its members in engaging with their own MPs to bring further pressure on the Government to rethink its plans.
“We stand united with family businesses across the UK to call for a fair, thoughtful, and consultative approach. BPR and APR exist for a reason – to allow businesses to continue operating without crippling tax penalties. The proposed changes risk damaging not only individual businesses but also the broader economic stability of the UK,” Lesley concluded.
For more information or assistance, members can contact British Marine’s Senior Public Affairs & Policy Executive, Joanna Richardson, at jrichardson@britishmarine.co.uk or call 07860 848834.
