JCB Heir Warns Inheritance Tax Raid Could Force Family Business Out of UK
Jo Bamford, heir to the billion-pound JCB fortune, has issued a stark warning that the government's inheritance tax clampdown on family businesses could drive his father's vast commercial empire out of the country. The manufacturing heir cautioned that relocation abroad might become necessary to protect jobs across the family's portfolio of companies and prevent businesses from being broken up and sold.
Tax Changes Threaten Longstanding Family Enterprises
The government has pressed ahead with proposals to impose inheritance tax on family-owned enterprises for the first time in decades, as part of a sweeping crackdown on wealth. The measure, first unveiled at Labour's inaugural Budget, has sparked widespread concern among business owners who fear the death duty will compel long-established firms to be sold off or dismantled to meet their tax obligations.
Both farms and family-run businesses had previously enjoyed a longstanding exemption from the unpopular levy, allowing them to be handed down without restriction. However, they were drawn into its scope amid concerns the arrangement was being exploited as a loophole by the super-wealthy.
Under the changes, which came into force last week, all shareholdings in a family business worth more than £2.5 million will be subject to a reduced inheritance tax rate of 20 percent.
Business Leaders Voice Concerns
Billionaire engineering mogul James Dyson and hotel magnate Sir Rocco Forte have both cautioned that unless the levy is reversed, their heirs will likely be forced to sell off portions of their businesses to meet the costs. Meanwhile, drinks tycoon Steve Perez, founder of VK-maker Global Brands, warned that his company has scrapped investment plans for a new plant and hotel in a bid to reduce his family's exposure to the tax.
At BusinessLive, JW Lees brewery boss William Lees-Jones also expressed fears about the impact of inheritance tax on family firms, calling the recent change an "act of self harm" that will stop family firms growing and creating jobs.
Bamford's Personal Connection to Business Preservation
Bamford, whose family owns boutique food and drinks retailer Daylesford, the eponymous luxury soap brand, and JCB, revealed that he and his sister were born in the United States in the 1970s following a government drive to nationalize its business. This personal history informs his perspective on government intervention in family enterprises.
"The family tax... is a real problem," he told City AM in an interview. "It could quite easily become an American business. I love being in Britain. I love being here. I love our factories here. But I would say to a political party of any stripe, look, there's only so much you can ultimately do."
The manufacturing heir, whose father donated millions to the Conservative Party and is now one of Nigel Farage's most prominent corporate backers, emphasized: "When you're hunting down family businesses or farms or any those two things, it is quite contentious, but you want people to hold on to these things long term."
Commitment to British Investment
Bamford stressed his family's commitment to British investment despite the tax challenges: "You want us, as a family, to invest here in Britain. You know, we have businesses everywhere around the world. We have them in India and China and Brazil. I'm here because I'm British and I'm here and I employ people in Britain because I like British people, and I like being in my part of the community."
Serial entrepreneur Bamford maintains a position on the JCB board but has carved out a career in the clean energy sector, establishing hydrogen fuel company Ryze Power and chairing the board of environmentally-friendly bus manufacturer Wrightbus.
The inheritance tax debate continues to intensify as family business leaders across multiple industries voice concerns about the potential consequences for job preservation, investment, and the long-term viability of enterprises that have been passed down through generations.
