Inheritance tax changes could lead to ‘irreversible damage’ to family-run businesses in Aberdeen and wipe out more than 1,200 jobs.
A report by Family Business UK has estimated that changes to Agricultural and Business Property Relief could cost 7,353 jobs across Scotland’s seven cities, at a financial loss of £589.3million to the country.
In the Granite City - one of the areas expected to be hit hardest - an estimated 1,200 jobs could be lost with an economic impact worth £108.million, according to the report, which has been published in The Herald this morning.
The UK Government announced a 20% inheritance tax on firms, including construction and agricultural businesses, from April 2026.
There is no changes to the first £1million of assets, however changes to agricultural and business property reliefs placed be halved to 50%, with firms telling The Herald the damage could be catastrophic for family businesses.
The report said: “Policy changes affecting this sector will, therefore, have outsized repercussions in the country and three Scottish constituencies (Aberdeen South, Aberdeen North and Aberdeenshire East and Moray) feature amongst the top 10 affected by GVA in the UK. Numerous business owners told us that they will have to slow or reduce investment because of the changes.”
The UK Government has described the changes, announced by the Chancellor last year, as ‘fair and balanced’.
Click here to read the full report in The Herald.