Rob Giles

The financial implications of the changes to IHT, even accounting for the recent U-turn, are nonsensical. Family businesses are often the key focus of a family's assets, employing people, creating jobs, paying taxes, and growing across generations. If it is worth more than £2.5m (£5m for couples) it needs to plan to lose 20% of its value above that amount to the Treasury every generation. If a business needs to plan to provide cash to its owners of 20% of its value at an unpredictable point every 30 years or so, it has to build up huge reserves, be cautious about growth and shy away from opportunities that stretch it. If a business has just taken out significant borrowing to finance growth and the owner dies, the inheritance tax could collapse the business costing the jobs of everyone employed. Our tax system should welcome, support, and encourage entrepreneurs, not hang a sword of Damocles above their heads. The 10 year payment regime doesn't change the underlying principle. A tax system that destroys viable businesses isn't fairer, it's short-sighted. Imagine having to explain to your employees that because your father or mother died, they've got a new employer now as you've had to sell, or worse, it all collapses and they lose their jobs. Tax people when they sell businesses, not when owners die.