Building Britain for Generations: A Policy Agenda for Family Businesses
“Changes to succession planning strategies are placing greater pressure on the next generation of family business leaders”
Next Generation Succession Succession in a family business is not an event: it is a process, often spanning a decade or more of preparation, mentoring, gradual ownership transfer and tax planning. It requires certainty above almost anything else, because the decisions made today, about ownership structure, governance, and financing, will determine whether the business survives the transition intact. The changes to Business Property Relief announced in the Autumn 2024 Budget have cut across that process for thousands of family
businesses already midway through succession. Where firms had structured their affairs around full BPR, they must now revisit plans, absorb new liabilities, and in some cases reconsider whether family succession remains viable at all. Fig.6. shows that more than four in 10 (44%) family businesses say that greater certainty in succession and inheritance taxation would help support the next generation into leadership. Changes to succession planning strategies driven by recent Inheritance Tax reforms are placing greater pressure on the next generation of family
Fig.6 What factors, if any, would most help your family business support the next generation to take on leadership or ownership roles in the future?
Greater certainty and stability in succession and inheritance taxation
44.0%
Access to leadership and management development for NextGen family members Support with succession planning and governance
35.1%
34.9%
Support to balance family and business responsibilities
34.5%
Reduced regulatory complexity
31.3%
Better access to long-term or patient finance
28.4%
No factors in particular would most help my family business support the next generation to take on leadership or ownership roles in the future N/A
7.0%
2.2%
Other, please specify
0.4%
0
10
20
30
40
50
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