Fiscal Turmoil: The Rising CGT and Tightened IHT Relief That Alarm Business Owners

The buzz in the UK corridors of power wasn’t just about the Chancellor’s microphone—business owners have been shouting from the rooftops about the one change that could feel like a financial tremor: the potential loss of Business Relief that shields assets from Inheritance Tax (IHT).

• Top worry: Wiping out Business Relief for IHT. This could make passing a family business to the next generation feel like a trip through the tax maze with no exit signs.
• Second in line: Dropping R&D tax relief. (The Chancellor just promised to keep it steady, but the fear still lingers.)
• Third: A hike in Capital Gains Tax (CGT) rates. Losing the lower rates that reward entrepreneurs for their bold moves.
• Less scary: Minimum wage increases or bigger pension contributions. These felt like mere bumps, not full-on cliffs.

Toby Tallon from Evelyn Partners summed it up: “If the Budget stabs at these key spots, entrepreneurs could find their years of hard work evaporating into a tax bill.” He warned that removing IHT relief would spike costs when handing over a business—something that could bruise the long-standing companies that keep jobs alive for dedicated crews.

“The Chancellor’s plan to freeze VAT, income tax, and NICs for working folks is reassuring, but silence on the other tax buckets keeps many owners awake at night.”

Nevertheless, the Labour manifesto pledges pro‑business, growth‑oriented measures. The mantra? “Stop the chaos, support businesses, and give investors the certainty they need to dream big.” The hope is that by sticking to the headline rates and keeping the new council at 25% corporation tax, Britain can keep the entrepreneurial engine roaring.

If you’re keen to stay in the loop as the Budget unfolds, consider enabling real‑time updates or dropping a line—business owners expect to have their voices heard loud and clear.