The boss of a JF Hornby & Co has warned that thousands of families face inheritance tax nightmares unless they take action and plan for the future.
Paul Hornby says the already complex landscape around estates and tax planning has become even more complicated following the Autumn Budget last October.
He shares the growing national sentiment that business owners and farming families, in particular, will bear the brunt of what he terms an “overly aggressive regime.”
Fears: MD Paul Hornby says business owners and farming families must take action now. Background image credit, Red Zeppelin
Paul said: “Everyone is talking about this issue, and understandably so. It’s the biggest tax raid on families and businesses for quite some time. People are angry, confused, and unsure of the best course of action.
“Where it gets challenging is that there aren’t necessarily any right or wrong answers; each case will be assessed on its own merits.
“There will be people who are panicking but will be fine, some who are panicking but only need minor changes, and others who haven’t given the issue a second thought but could be in serious trouble.
“Sitting on your hands or burying your head in the sand like an ostrich is the worst possible approach.
“These changes need to be tackled head-on. Sadly, it may be the case that little can be done to mitigate them, but having knowledge and a clear view of the future will allow people to plan.”
From 6 April 2026, the government will introduce a cap on the full 100% relief currently available under Business Property Relief (BPR) and Agricultural Property Relief (APR) for inheritance tax (IHT).
The first £1 million of qualifying business and agricultural assets will still benefit from 100% relief, but any value above this threshold will only qualify for 50% relief.
This effectively means that the excess will be subject to an IHT rate of up to 20%. The government claims the reforms are intended to make the system fairer while still protecting smaller family businesses and farms.
The changes have led to widespread disquiet among the business and farming communities. In November, thousands of farmers descended on Parliament Square in London as part of an organised protest against the changes.
Meanwhile, SMEs and family businesses have publicly expressed their fears, saying the budget announcements sound the death knell for their enterprises—many of which have been built up over decades.
Budget backlash: Paul believes Chancellor of the Exchequer Rachel Reeves dealt a huge blow to businesses in her Autumn Budget
The Conservative Party, under the leadership of Kemi Badenoch, has expressed strong opposition to the Labour government’s changes to inheritance tax (IHT) and Agricultural Property Relief (APR), suggesting they would reverse them if elected in 2029.
And while this would be a welcome move, Paul says it also creates huge uncertainty, making it difficult to plan for the future.
“All we can do is deal with the cards we have been dealt in the here and now,” he said.
“We have both sides of the Commons playing politics with people’s livelihoods and futures. It stinks—but we have little option other than to accept where we are and start the process of planning.
“I would urge anybody who fears they might be impacted by the new taxation regime to contact their accountant for support.
“The only way to tackle this is head-on.”
If you need support, you can contact the team at JF Hornby by calling 01229 588077 or emailing jfh@jfhornby.com
