Dyson slams new inheritance tax plans that could hurt family businesses
Labourʼs new tax policy targets family businesses and farms with assets over £1M starting in 2026. **James Dyson** and farming leaders warn about serious impact on business continuity and rural communities
James Dyson‚ the well-known british inventor raises alarm about Labours new inheritance rules that hit family-run enterprises. The tax changes (which start in about 1‚5 years) mean family businesses worth more than 1M pounds will pay 20% when passing to next generation
Rachel Reeves is killing off established family businesses and any incentive to start new ones‚ with her 20 per cent Family Death Tax; levied each time a family business passes a generation
The policy is part of a bigger tax-and-spend plan thats bringing in 40B pounds for public services. Small farms face similar 20% charge which farming leaders say could force many to quit the industry
The National Farmers Union points to growing concerns in rural areas:
- Elderly farmers feeling like burden to families
- Mental-health issues rising among farm owners
- Local Labour councillors expect voter pushback in spring elections
- Small businesses worried about long-term survival
Treasury calculations show the farm-related changes will bring just 520M yearly by mid-decade - enough to fund NHS for one day while employer tax changes bring 50 times more money
Rachel Reeves defends these moves saying last year 40% of farm tax relief went to just 7% of rich landowners. She thinks its not possible to keep old rules with current public service needs; stating money will help improve roads schools and NHS that everyone uses including farmers
