Proposals from Leader of the Opposition Kemi Badenoch MP to scrap inheritance tax on family homes highlight a welcome focus on reducing tax burdens for families across the UK. However, NFDA urges for more clarity that any discussions regarding proposed reform must also extend to family-owned automotive dealerships to safeguard multi-generational businesses and secure regional investment.
Family-owned businesses account for a significant proportion of the UK’s franchised outlets, employing thousands of people across local communities. Family dealerships face substantial financial pressures when planning succession, and without appropriate reliefs, high inheritance tax during business transfers can force multi-generational retailers to divert capital away from workforce development, essential facility upgrades, and in some cases dealership closure.
NFDA urges policymakers to ensure that family businesses and trading assets are fully protected when considering any future tax reform, enabling retailers to invest with confidence and maintain local employment.
Sue Robinson, Chief Executive of NFDA said: “Family-owned dealerships are a cornerstone of the automotive retail sector and play a vital role in supporting local economies across the UK. While proposals to reduce inheritance tax on family homes are positive, NFDA stresses that these protections must also cover family-owned businesses. Clear and practical policies are essential to give retailers the confidence to invest, adapt and continue supporting customers. NFDA looks forward to working with government and political stakeholders to ensure the voice of retailers is heard.”