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Family business owners reveal how new tax rules force them to close or sell

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British family-run companies face hard choices after recent tax policy changes. Business owners share their stories about dealing with new inheritance tax rules and increased national insurance costs

The recent Budget changes hit family-run companies hard making many business-owners re-think their long-term plans. The new rules affect inheritance tax business property relief and boost employers national insurance costs

Michael Brundle runs a steel company thats been around since late 1800s (when the Barbican area was just getting started). His business employs over 300 people and ships more than 10k products across UK: “We paid £1m in taxes last year and now we might need to sell our warehouses just to cover the inheritance tax“ he says

The car-sales industry faces similar problems. Richard Manning who runs a 50-year old family garage in Derbyshire with his dad and son needs to find extra £186‚000 yearly for new national insurance payments. “We provide jobs for 115 people but the government dont understand how their decisions affect real businesses“ Manning explains - his company now faces a £4m inheritance tax bill

Weʼre the backbone of the country; thereʼs tens of thousands of us

Richard Manning states

Exhibition stand maker David Jones built his £10m business over four decades His son joined eight years ago but now their growth plans are stuck: “We cant just sell fields like farmers do to pay the tax its not that simple“ Jones points out

John Thorpe chose to close his 26-year-old IT firm early. “I shut down before more changes come; they see us as cash cows in the middle“ he explains. His liquidator told him their business went up 50% lately which makes the timing even worse

The new rules start in Apr-2026 putting a £1m cap on Business Property Relief. Many owners say this makes growing their companies pointless since bigger success means bigger tax problems for their families

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