New White Paper on BPR and GHR: Supporting Succession?
A new white paper, Supporting Succession? An assessment of the impact of Business Property Relief and Gift Hold-Over Relief on family businesses in the UK, produced by Policy Points and Henham Strategy for the Family Business Research Foundation, assesses the impact of Business Property Relief (BPR) and Gift Hold-Over Relief (GHR) as mechanisms supporting the succession of family businesses in the UK.
The paper assesses the historical development and current workings of these reliefs, along with a comparative analysis of international practices, providing a broader perspective on their implementation globally.
The research reveals BPR and GHR have been instrumental in reducing the tax burden for UK family businesses, which is thought to allow them to thrive and sustain operations across generations. The value of the reliefs is worth more than £1.5 billion annually, but there is little data available today on the detailed impact on the companies themselves and the families that own them.
The need for research to clearly identify the effect of the recent changes to BPR and APR in the budget is clearly evident, and the Family Business Research Foundation is looking to coordinate this work so the implications of future policy changes can be properly understood.