Labour is warned their inheritance tax raid will devastate family-run companies as well as farms [Video]

19:31 EST 01 Dec 2024, updated 20:11 EST 01 Dec 2024

Labour’s Inheritance Tax raid will devastate family-run companies as well as farms, ministers are warned today.

Analysis has found that the introduction of death duties on the assets of family-owned firms could lead to as many as 125,678 job losses over the next five years among mostly small businesses and reduce economic activity by £9.4billion.

That would mean the Treasury losing out on £1.3billion by 2030, according to calculations by CBI Economics, damaging Government coffers as well as the economy.

A survey carried out by the consultancy also finds that one in five family firms expects to have to take action to avoid the new Inheritance Tax liability of 20 per cent on assets worth more than £1million.

As many as 15 per cent who expect to be hit say they will sell up completely, while even those below the threshold plan to reduce investment or cut jobs.

The introduction …