Request for Proposals: Understanding the Family Business Response to Reforms to Business Property Relief
Issued by: The Family Business Research Foundation
1. Background and Policy Context
1.1 What is Business Property Relief (BPR)?
Business Property Relief (BPR) is a tax relief designed to support business continuity by reducing the value of business assets for Inheritance Tax (IHT) calculations. Introduced in 1976, BPR was originally intended to prevent businesses from being sold upon the owner’s death due to high tax liabilities. Over time, the relief has expanded, notably including unlisted shares and businesses in various asset classes (Policy Points/Henman, 2024).
1.2 The 2024 Reforms to BPR
The UK government announced significant changes to BPR in the Autumn Budget 2024, effective from April 6, 2026. These reforms include:
A new £1 million allowance, where 100% BPR remains available on the first £1 million of combined agricultural and business assets.
A 50% relief above £1 million, reducing the rate for excess combined assets.
A 50% relief for unlisted shares, replacing the previous 100% relief.
Source: UK Government Budget
1.3 The Impact of the Reforms
The impact of these changes on family businesses remains uncertain.
The Office for Budget Responsibility (OBR)’s static costing estimates that the changes to BPR and APR will raise £1,765 million over a four-year period but noted the policy was assigned a ‘high’ uncertainty rating, stating:
‘The main driver of uncertainty is the behavioural response to the measure, given the range of options potentially available. This in turn adds uncertainty to the modelling of the behavioural responses.’ (OBR, ??)
Stakeholders such as Family Business UK (FBUK) have argued that BPR facilitates long-term investment, succession planning, and economic stability for family-owned firms (FBUK Ref/Policy Points, 2024). By contrast, the UK Government and some think tanks such as the Resolution Foundation and Institute for Fiscal Studies (IFS) have claimed that BPR disproportionately benefits wealthier estates and creates loopholes for tax avoidance (IFS ref/RF ref).
FBUK and around 29 UK membership bodies commissioned CBI Economics to undertake a study of the potential effects of the reforms to BPR and Agricultural Property Relief (APR) (Reference - FBUK website). The research sought to assess the economic and fiscal impacts of the October 2024 Budget changes to BPR and APR on family businesses and farms in the UK. It also aimed to gain a better understanding understanding the behavioural changes among family businesses and family-owned farms in response to these changes to APR and BPR (Ref). The study involved a national survey of family businesses and farms across the UK focusing on those businesses with at least 25% family ownership. It also included an analysis of economic and fiscal impacts using an input-output economic model developed by CBI Economics; and, finally, economic modelling of potential impacts was carried out looking at potential behavioural responses (to the policy changes), supply chain effects, and employee spending, generating estimates for Gross Value Added (GVA), employment, and net fiscal impacts. CBI Economics concluded that that the reforms to BPR and APR are likely to result in negative impacts on investment, turnover, and headcount among affected businesses.
2. About the Study: A Longitudinal Qualitative Study of Family Businesses
As part of a wider programme of work seeking to assess the impact of the reforms to BPR, the FBRF seeks to commission qualitative research study to understand how the reforms are affecting family businesses in the period leading up to their implementation (Summer 2025 through to Winter 2026).
The project will build on the policy analysis white paper produced by the FBRF/Policy Points, Supporting Succession? and survey work by CBI Economics, FBUK and partners looking at the potential impact of the reforms to BPR (CBI Economics/FBUK, 2024, 2025). It will contribute building the evidence base needed to evaluate the impact of these tax policy reforms.
The study will involve qualitative research using a longitudinal case study methodology (ref) to understand how the reforms to BRP are currently affecting family businesses in the UK.
The objectives are to:
Assess how family businesses are responding to the reforms – in terms of family business behaviour, decision-making, strategy, and operations.
Examine the impacts on succession planning, investment strategies, ownership structures, and workforce decisions.
Investigate differences in impact between small, medium, and large family businesses, and firms in different industries.
Understand their expectations of the future and how they plan to adjust once the policies are implemented in April 2026.
This study should focus on:
Business strategies in response to anticipated tax changes.
Decision-making processes regarding succession planning and investment.
Variations in response across different business sizes and sectors.
How members of the owning business family expect the reforms will impact on their business and on their relationship with their business.
Deliverables:
Qualitative Research Report: A comprehensive report summarizing case study findings.
Stakeholder Insights Summary: Key themes and practical implications for policymakers and businesses.
In collaboration with FBRF: organize an in-person panel discussion on the effects of the BRP reforms on family firms - tailored towards research, policy and practitioner communities.
3. Process of Applying
Interested research teams, consultancies, and institutions are invited to submit proposals. The deadline for submissions is [DATE], and proposals should be emailed to info@fbrf.org.uk.
Applicants should ensure that their proposals align with the objectives and scope outlined in this document.
Proposals should be a maximum of 1,000 words (excluding CVs and references) and must include:
Research Questions and Objectives: A clear explanation of how the study will address the specified research questions.
Methodology: A detailed description of research design, methods, and data sources. Please note that the FBRF adopts the European definition of family business.
Project Team: Roles, responsibilities, and expertise of team members. CVs of members of the project team should be attached to your proposal, including details of any qualifications and experience relevant to the project. Applicants should indicate who will take the lead on the project.
Timeline and Milestones: Key deliverables and expected completion dates.
Budget: A breakdown of costs, ensuring value for money. Note that the FBRF is a charity and therefore does not cover indirect costs.
Dissemination Plan: Strategies for maximizing policy and stakeholder engagement.
Proposals will be evaluated based on the following criteria:
Relevance and Feasibility: Alignment with research objectives and practical feasibility.
Methodological Rigour: Robustness of the proposed research approach.
Team Expertise: Experience in economic, policy, and tax research.
Value for Money: Cost-effectiveness of the proposed budget.
Impact and Dissemination Strategy: Potential to inform policy and benefit stakeholders.
4. About the Family Business Research Foundation
The FBRF is a registered charity since 2009 and was established to foster greater understanding of family firms and their contributions to the UK economy and society. The FBRF’s mission is to provide evidence-based research and practical guidance to support family businesses and inform policymaking. Click here for more information about the charity.
For queries related to this RFP, please contact Dr. Martin Kemp at info@fbrf.org.uk.
5. References and Sources
Policy Points/Henman (2024) White Paper Supporting Succession
Henman (2024) FBUK policy paper
IFS
Resolution Foundation
UK Gov - Oct Budget
OBR Report
CBI Economics/FBUK - January 2024 report
CBI Economics/FBUK - March 2025 report