BASA Member Consultation: Inheritance Tax and Family-Owned Manufacturing Businesses
BASA Member Consultation: Inheritance Tax and Family-Owned Manufacturing Businesses
BASA has been approached by a member company regarding ongoing industry discussions around the impact of inheritance tax rules on family-owned businesses and whether trade associations should support calls for the Government to review the current arrangements.
As many members will be aware, changes to Business Property Relief (BPR) have prompted concerns from a number of UK family-owned businesses, which argue that inheritance tax liabilities arising when ownership passes between generations could reduce investment, increase borrowing, or in some cases require the sale of business assets or shares in otherwise successful enterprises. A broad coalition of UK trade associations has already called for further Government consultation on the issue.
Before considering any position, BASA Council believes it is important to understand the views of our membership. We recognise that BASA represents a diverse range of companies, including family-owned businesses, privately-owned companies, subsidiaries of multinational organisations and publicly owned firms. As such, we wish to ensure that any engagement on this issue reflects the interests of the membership as a whole.
At this stage, BASA is not being asked to endorse a specific tax policy. Rather, we are seeking members' views on whether BASA should support calls for Government to review the impact of inheritance tax rules on the continuity and long-term sustainability of UK manufacturing businesses where ownership remains within a family.
We would welcome your thoughts on the following questions:
- Is this an issue that directly affects your business or its long-term succession planning?
- Do you believe current inheritance tax arrangements could have unintended consequences for investment, growth, employment or business continuity within UK manufacturing?
- Should BASA support calls for Government to undertake a further review or consultation on the impact of inheritance tax rules on family-owned businesses?
- Do you have any concerns about BASA becoming involved in this discussion?
If you would like to comment, please email your views to me by 16th October 2026.
Council will review the feedback received and consider whether any further action is appropriate. Please forward this email to someone on your companies senior leadership team or discuss with them before replying.
Thank you for your input.