Impending inheritance tax changes mark a “significant turning point” for family businesses across the UK, the Co-CEO of Rigby Group has argued.
Writing in an op-ed for Family Business UK’s magazine (see bottom), Rigby said his company’s “very worst fear materialised” on 30 October when the government announced it will be effectively halving Business Property Relief (BPR) in its budget.
“It all changed on 30 October”
SCC owner Rigby Group is one of the UK’s largest family businesses, with fiscal 2024 revenues of £3.7bn.
A third generation of Rigbys has begun to enter the SCC workforce, Rigby revealed in June as he acknowledged SCC had endured a “more difficult” year.
In his op-ed, Rigby wrote that Rigby Group’s recent move to transfer to trust from the first generation “now feels like it was a very wise thing to do”.
“For five decades we have been able to rely on BPR to make long-term growth plans for our family businesses, avoiding complex tax and restructuring planning. Unfortunately, on 30th October 2024 that all changed,” Rigby wrote.
“The new legislation will come into force on 6th April 2026, giving us a short window to lobby for an amendment and ideally its removal.”
Rigby’s op-ed coincided with his decision to become Deputy Chair at Family Business UK, ahead of becoming Chair next April.
“Given where we are, I would urge any company that has not undertaken family structuring to consider their future ownership structures immediately,” he wrote.
“Instead of considering growth, unfortunately all energy now needs to be inward forced to consider how to best protect the longevity of the family business whilst providing for the current generation. The priority must be considering the future of your enterprise, having discussions with the next generation about their intentions and planning for optionality.”
“Scarred for years to come”
Rigby’s comments come after he expressed optimism in September that a pro-business budget could transform the UK into the “healthy man of Europe”.
“If you’re a risk taker, wealth creator, entrepreneur, if you’ve got guts and see opportunities, I hope from next year we should be in a better place,” he said at the time.
On 30 October, Chancellor Rachel Reeve used her first budget to unveil a range of new tax measures designed to fund an estimated £70bn increase in spending on public services and investment. This includes not only the inheritance tax changes, but also an increase in the rates of capital gains tax and – most notably – a rise in national insurance.
The tax rises are necessary to “to prevent austerity and rebuild public services”, prime minister Keir Starmer said.
Post-budget, Rigby struck a more pessimistic tone about what they will mean for business, however.
“It is no understatement to say that alongside changes to Agricultural Relief our regional and rural economy is set to be scarred for years to come, putting jobs and communities at risk,” Rigby wrote.
