Building Britain for Generations: A Policy Agenda for Family Businesses
Fair Taxation System Every party claims growth as its priority. But growth depends on investment, and investment depends
Recommendation Create a clear Tax Roadmap to give businesses confidence about the direction of travel on tax issues. This Roadmap must include business and ownership taxes including Corporation Tax, Capital Allowances, Business Rates, Inheritance Tax and Dividend Tax. This clarity would allow firms to plan multi-year investments, succession arrangements and expansion strategies without the fear of sudden, damaging surprises.
Fig.1 below shows the three areas of taxation that respondents said would help their business grow: reducing Employer National Insurance contributions, Business Rates reform and Inheritance Tax reform. 4 VAT simplification (31%), reforming income tax rates (31%) and capital gains tax (29%) were almost equal considerations, highlighting how multi-layered tax concerns are for family firms.
on confidence. Family businesses, who plan in decades, not electoral cycles, will not commit capital when the tax rules keep changing. A fair tax environment for family firms means one thing above all: stability. That means a tax system that rewards long-term ownership, supports smooth generational transitions, and does not treat succession as a taxable event to be exploited, but as a moment of continuity to be celebrated. Stability and Forward Planning The tax and policy environment facing family businesses is not a narrow concern but a matter of national economic strategy. When Government decisions strengthen the ability of family firms to invest, expand and export, the benefits ripple through every region of the UK. Given that family businesses make up more than 90% of all UK businesses, this has far-reaching impacts across our economy. Uncertainty is itself a tax on investment. Family firms will not commit capital when the rules keep changing. Politicians need to understand how interlinked operational business taxes (paid while running the business) and ownership/transfer taxes are for family businesses and their owners.
Fig.1 Which forms of tax support, if any, would most help your family business invest and grow over the next three years? (Select up to 3)
Reducing Employer National Insurance Contributions
40.8%
Business rates reform
38.8%
Inheritance tax reform (Business Property Relief and Agricultural Property Relief)
34.0%
VAT simplification
31.3%
Reforming income tax rates
31.3%
Reforming Capital Gains Tax
29.0%
Reforming and simplifying R&D tax reliefs
24.0%
No form of tax support would help my family business invest and grow over the next three years
5.9%
Other
0.7%
0
10
20
30
40
50
4 Censuswide Survey commissioned for Family Business UK, Jan-Feb 2026
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