FBRF publishes major new report on Business Property Relief and family firms
London, Tuesday 25 November 2025
The Family Business Research Foundation (FBRF) has published a new research report, Business Property Relief and Family Firms in the UK: From Relief to Reform, which examines how Business Property Relief (BPR) is used today, what recent reforms to BPR are likely to mean for family businesses and business-owning families and the political narratives that underpin recent debates about BPR. The report highlights the research required to properly evaluate and compare the different perspectives.
Drawing on official statistics, in-depth policy analysis, academic research and evidence from business organisations, the report shows that BPR has grown into a substantial and highly concentrated inheritance tax (IHT) relief.
Evidence from family business and farming organisations, as well as economic impact studies, suggests that the recent reforms to BPR may lead many family firms to scale back investment, change succession plans, or restructure ownership, with potential consequences for jobs, regional economies and public revenues.
The report argues that debates over BPR are not only about statistics but also about competing values and policy narratives:
· one emphasising continuity, competitiveness and the contribution of family firms to jobs, long-term investment and communities; and
· another stressing fairness, equity and fiscal responsibility, and questioning whether generous reliefs concentrated among a minority of wealthy estates can be justified.
It concludes that not only does the actual impact on family businesses and their owners of the recent changes need to be evaluated, but also that more research is required to understand the benefits (and costs) that family businesses bring to society to understand the impact of the changes made. If this is done, policy makers will be much better placed to evaluate the fairness and impact of charging wealthy estates more inheritance tax.
Sir Michael Bibby, Chairman of the Family Business Research Foundation, said:
“Reforms to Business Property Relief have real-world consequences for families who own and run businesses, as well as for the public finances. This report underlines that decisions about inheritance tax and reliefs should be based on robust evidence. There is a lot of work to do to properly evaluate the impact of the BPR changes and this report is the first step in outlining the research required and putting in place a framework for it to be undertaken. To be successful - family businesses, their owners, policy makers, academics and others need to work together to properly understand the issues to ensure the best decisions can be made for the economy, society and the UK as a whole”
About the Report:
Business Property Relief and Family Firms in the UK: From Relief to Reform is an FBRF research report by Martin Kemp of the Family Business Research Foundation. It analyses who currently claims BPR and at what cost, tracks the evolution of BPR policy over time, explains the October 2024 reforms and their projected impacts, and analyses political, business and research community responses. The report uses narrative policy analysis to map the competing storylines that shape the current debate and sets out priority areas for future research and evaluation of the reforms.
The report is available to download from https://www.fbrf.org.uk/reports/bpr-relief-to-reform
For more information about the Family Business Research Foundation and its work, please visit www.fbrf.org.uk.
Contact for Media Inquiries: Family Business Research Foundation (FBRF) Email: info@fbrf.org.uk Website: www.fbrf.org.uk
Notes to Editors:
About the Family Business Research Foundation (FBRF): The Family Business Research Foundation is a UK charity (No. 1134085) dedicated to improving understanding of the family-owned business sector and its contribution to the economy and society. See www.fbrf.org.uk for more information about the charity and its work.
The October 2024 reforms to Agricultural Property Relief (APR) and BPR are set out in HMRC and HM Treasury policy papers and in a House of Commons Library Research Briefing on changes to agricultural and business property reliefs for inheritance tax. See HMRC (2025) and Masala et al. (2025)
HMRC’s guidance and the Inheritance Tax Manual refer to this inheritance tax relief as “Business Relief”, while HMRC’s statistical publications continue to use the term “Business Property Relief (BPR)”. This report uses “Business Property Relief (BPR)” when discussing official statistics and the wider policy debate (HM Revenue & Customs, n.d.; HM Revenue & Customs, 2016; HM Revenue & Customs, 2024).
External links:
HM Revenue & Customs (HMRC) (n.d.) Business Relief for Inheritance Tax. GOV.UK. Available at: https://www.gov.uk/business-relief-inheritance-tax
HM Revenue & Customs (HMRC) (2016) Inheritance Tax Manual: IHTM25131 – Business relief: Outline of business relief. Available at:
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm25131
HM Revenue & Customs (HMRC) (2024) Non-structural tax relief statistics (December 2024). Available at:
https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs/non-structural-tax-relief-statistics-december-2024
HM Revenue & Customs (HMRC) (2025) Agricultural property relief and business property relief reforms. Policy paper, 21 July 2025 [Online]. Available at: https://www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms
Masala, F., Keep, M. and Seely, A. (2025) Changes to agricultural and business property reliefs for inheritance tax. Research Briefing CBP-10181. London: House of Commons Library. Available at: https://commonslibrary.parliament.uk/research-briefings/cbp-10181