Inheritance tax on private sector businesses

There has been a considerable shift in government policy relating to the taxation of business and agricultural property on death. This has been a huge shock to the system with the focus in the mainstream media mainly being on the impact on farmers.

The Labour government has said that a vast majority of farmers will not be impacted. Of course no one can really tell as they have not all died at once to confirm this assumption and there will be a multitude of ownership arrangements and valuation issues which mean some will pay inheritance tax (IHT) and others will not. So at best it is a projection based on previous claims made.

Since 1992 the tax system has aimed to encourage enterprise and the passing of business and agricultural assets down to future generations by largely exempting the assets from IHT. ...