Rachel Reeves’ Budget has thrown up new obstacles for family businesses. Stephanie Parish tells you why you should plan ahead now

The 2024 Autumn Budget has ushered in a new era of evolving tax rules, presenting significant challenges and considerations for both individuals and organisations. Among those most affected are the UK’s 5.3m family-owned businesses.

Labour’s policy decisions have sparked controversy within the business community, with major figures such as Sir James Dyson publicly warning the government about the impact of Reeves’ tax regulations.

The particular worry is around the proposed changes suggested to be coming into effect from April 2026, which if not amended, will see valuable business relief against inheritance tax capped at £1m.

These headwinds and uncertainties have prompted many business owners to reevaluate their exit and succession strategies, with some accelerating their plans to exit and sell completely, while others seek ways to preserve their businesses for future generations.

A technical consultation on the changes to business relief has been promised by the government in early 2025. After which we shall await draft legislation to thoroughly review and understand the finer details.

But now the full scope of the Budget has been digested, what proactive steps should business owners be taking to prepare for these incoming changes?

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