Changes to inheritance tax reform which could affect hundreds of Lancashire family businesses have been opposed by the North & Western Lancashire Chamber of Commerce.
Following a consultation with the local business community, it was decided that government reforms to Business Property Relief (BPR) and Agricultural Property Relief (APR) should be opposed.
While media attention has primarily focused its attention on the agricultural sector with mass demonstrations across the UK, it has also come to light that thousands of family businesses will also face extra taxation.
The plans for BPR and APR were unveiled in the Autumn Budget of 2024 and are due to come into effect in April next year.
It was discovered that some family businesses were holding back investing in their companies in order to stay under the £1m threshold, while others were taking steps to avoid incurring extra costs to their business.
The Chamber has formally submitted an objection to the Treasury, as well as writing to Lancashire’s backbench MPs informing them of its decision.
Dawn Cheetham MBE, president of the NWL Chamber, said: “The Chamber represents hundreds of family businesses from many sectors of Lancashire’s diverse economy, all striving for growth.
“We believe these reforms will greatly impact these businesses, at a time when many are just coming to terms with the tax burden enforced upon them with the hike in National Insurance, business rates and other overheads.
“These extra changes in BPR are already forcing many businesses to alter their direction and our opposition is backed unanimously by our members. It is unfair to ask any more of family businesses when many are already struggling.”
