Research indicates that potential alterations to inheritance tax regulations for family-owned businesses and farms could jeopardize over 200,000 jobs.

The proposed revisions to business property relief (BPR) and agricultural property relief (APR) by the government could also lead to a reduction of nearly £15 billion in UK economic activity and a loss of £1.9 billion in tax revenue, according to a study conducted by Family Business UK (FBUK).

The upcoming reforms aim to adjust APR, which currently provides up to 100 percent relief from inheritance tax on qualifying agricultural land, and BPR, which applies similarly to buildings used for business purposes, including various types of properties beyond just stately homes.

In October, Chancellor Rachel Reeves announced that starting in April 2026, inherited agricultural assets exceeding £1 million would incur a 20 percent inheritance tax—this rate is notably half of the standard rate.

FBUK’s findings suggest that these changes could potentially result in job losses totaling 208,000. Regions such as Cornwall and Aberdeenshire are anticipated to be significantly impacted, along with Yorkshire, northern and eastern England, the Midlands, and Northern Ireland. The sectors likely to experience the greatest challenges include construction, manufacturing, accommodation, hospitality, and the motor industry, in addition to agriculture and horticulture.

Neil Davy, the chief executive of FBUK, remarked, “No industry, sector, region, or parliamentary constituency will be safe from these changes. Family business owners in construction, services, manufacturing, tourism, transport, agriculture, and horticulture are reevaluating their long-term investment plans due to the adjustments in BPR and APR, which affects not only their businesses but also their employees and local communities.”

He added, “While some government sectors are focused on promoting regional growth and creating new opportunities across the economy, this research indicates that changes to BPR and APR could thwart these efforts entirely.”

The analysis, which surveyed 4,174 businesses and farms, revealed that family-owned businesses affected by modifications to BPR might see the most significant decrease in investment, particularly in Yorkshire & the Humber and the East of England, estimated at a 17 percent decline. The highest job loss rates are expected in parts of Scotland and the North West and North East of England.

For enterprises and farms impacted by APR reforms, the most substantial anticipated cuts to investment are projected for Northern Ireland, the Midlands, and North East England, also at around 17 percent.