“The family tax is a real problem,” said Jo Bamford, the head of JCB, one of Britain’s largest family-owned manufacturing firms. His comments come in light of recent inheritance tax reforms that could significantly impact the company’s future in the United Kingdom.
Founded in 1945, JCB operates 11 factories across the UK and employs more than 8,000 people. The company has been a staple of British manufacturing, but Bamford has warned that the new inheritance tax regulations could force JCB to reconsider its base of operations.
The reforms, announced during Labour’s maiden Budget in 2026, introduce a threshold of £2.5 million for business assets. Any value above this threshold is subject to a 20 percent tax charge, a significant shift from previous policies that exempted family-owned businesses from such taxes.
“It could quite easily become an American business,” Bamford stated, highlighting the potential for JCB to relocate if the financial burden becomes too great. He emphasized the importance of family businesses in the UK economy and expressed a desire for policies that encourage investment in Britain.
Previously, family-owned businesses like JCB were exempt from inheritance tax to facilitate smoother transitions between generations. However, the recent changes have raised concerns among business owners about the implications for asset sales and future investments.
In defense of the reforms, a Treasury spokesperson noted, “We’ve listened and raised the relief threshold to £2.5 million to protect more small family businesses.” This statement aims to reassure business owners that the government is considering their needs amidst the tax changes.
Concerns have been mounting as several wealthy individuals have already relocated from the UK due to unfavorable tax policies, and the removal of non-domiciled tax status has further influenced these decisions.
Despite the challenges posed by the inheritance tax reforms, Bamford expressed a commitment to maintaining JCB’s operations in Britain, stating, “You want us, as a family, to invest here in Britain.” This sentiment reflects the ongoing struggle between business sustainability and regulatory pressures.
As the situation develops, the impact of these tax reforms on JCB and similar family-owned businesses will be closely monitored. The future of JCB in the UK remains uncertain, with potential implications for thousands of employees and the broader manufacturing sector.
