“The family tax is a real problem,” warned Jo Bamford, the chairman of JCB, one of Britain’s largest family-owned manufacturing firms. His statement comes amid significant changes to inheritance tax laws that could reshape the future of family businesses across the UK.
Founded in 1945, JCB has grown to operate 11 factories and employs over 8,000 people. However, Bamford has expressed serious concerns that the new inheritance tax reforms, which impose a 20 percent tax on business assets exceeding a £2.5 million threshold, could force the company to consider relocating its operations to the United States.
“It could quite easily become an American business,” Bamford added, highlighting the potential consequences of these tax changes. Previously, family-owned businesses were exempt from inheritance tax, allowing for smoother transitions between generations. The recent reforms, announced during Labour’s maiden Budget in 2026, have raised alarms among business owners who fear they might have to sell assets or curtail investments.
As the Treasury defends the reforms, stating, “We’ve listened and raised the relief threshold to £2.5 million to protect more small family businesses,” Bamford remains skeptical. He emphasized the importance of family investments in Britain, stating, “You want us, as a family, to invest here in Britain.”
The landscape for wealthy individuals in the UK has shifted dramatically in recent years, with many choosing to relocate due to unfavorable tax policies, including the removal of non-domiciled tax status. Bamford’s commitment to Britain is evident, yet the looming tax changes pose a significant threat to the legacy of JCB.
As the situation unfolds, the impact of these reforms on JCB and similar family-owned businesses will be closely monitored. The future of such enterprises hangs in the balance as they navigate the complexities of the new tax landscape.
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