What's Happening?
The Construction Leadership Council (CLC) is intensifying its efforts to challenge upcoming changes to inheritance tax (IHT) rules, set to take effect in April. These changes, announced in the October
2024 Budget, will reduce Business Property Relief (BPR) from 100% to 50% for assets over £1 million, affecting family-run businesses. CLC co-chair Mark Reynolds expressed frustration over the government's lack of response to industry concerns. The CLC plans to gather evidence to demonstrate the potential negative impact on jobs and growth, aiming to revisit the issue in the New Year. The changes could impose a 20% inheritance tax on assets above £1 million, affecting 81% of construction SMEs.
Why It's Important?
The proposed IHT reforms could have significant financial implications for family-run construction businesses, potentially leading to closures and job losses. The CLC's efforts to oppose these changes reflect broader industry concerns about the economic impact on small and medium-sized enterprises (SMEs). The reforms could disrupt business continuity and succession planning, affecting the livelihoods of many employees. The CLC's push for evidence-based advocacy highlights the need for government engagement with industry stakeholders to address these concerns.
What's Next?
The CLC plans to gather evidence to support its case against the IHT reforms and intends to bring the issue back to the government's attention in the New Year. The organization will likely continue lobbying efforts and seek to collaborate with other industry groups to amplify their message. The outcome of these efforts could influence future policy decisions and potentially lead to adjustments in the proposed tax changes.
