Inheritance tax changes threaten family construction firms' futures

Family-run construction plant hire firms are warning of potential closures due to new inheritance tax plans by Labour. The GAP Group, a major player in the industry, could face a tax bill of £50-£100 million, threatening its future. Labour plans to cut Business Property Relief to 50%, effective April 2026. This change could impact over 1,500 of the 1,950 firms represented by the Construction Plant-hire Association, which are often asset-rich but cash-poor. The Shadow Chancellor criticized the proposed changes, stating they could harm family-owned businesses. The Treasury defended its tax reforms, claiming they will lower effective inheritance tax rates and provide interest-free payment options.