UKH urges inheritance tax rethink

UKHospitality has called on the government to reconsider proposed reforms to inheritance tax that it says could devastate family-run hospitality businesses across the UK. The trade body has warned that changes to business property relief risk forcing the sale of viable businesses, undermining generational succession, weakening rural and coastal economies, and reducing reinvestment and long-term tax receipts.

Recent member survey data reveals that some 47% of family-owned hospitality businesses expect to be directly affected, with 51% cutting back investment and a fifth anticipating being forced to sell up. UKHospitality has responded by calling for a pause and extension of consultation with full sector engagement, and a delay to implementation until at least 2029.

‘Reconsider these reforms’
Kate Nicholls, chair of UKHospitality, said: “These reforms are flawed in design, rushed in process, and unfairly target small- and medium-sized family businesses. Without changes, many operators will be forced to sell assets in weak markets, with devastating consequences for jobs, investment and communities.

“The principle behind business property relief was to safeguard family-run businesses, but these changes sadly do the opposite. I urge the government to think again and reconsider these reforms.”

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