JCB could move abroad over inheritance tax, raising fears for family farms

JCB has warned it could move operations out of Britain over inheritance tax changes, raising fresh concerns for family-run farms and rural businesses.

In an interview with The Telegraph, Jo Bamford, son of chairman Lord Bamford, said the construction equipment manufacturer could “quite easily become an American business” if tax pressures continue to rise.

The warning comes amid growing concern over inheritance tax reforms, which affect how family-run firms — including many farms facing succession challenges — are passed down through generations.

The concerns centre on recent changes to inheritance tax rules. Under the revised policy, full relief now applies only to the first £2.5m of business assets, with a 20% tax applied above that threshold when ownership is transferred.

Mr Bamford described the levy as a significant issue. “The family tax is a real problem,” he told The Telegraph.

While stressing his personal commitment to the UK, he suggested businesses with global operations have increasing flexibility over where they invest.

“I love being in Britain… I love our factories,” he said. "But… there’s only so much you can ultimately do.”

Founded in 1945, JCB is one of the UK’s largest family-owned manufacturers, with 11 factories and more than 8,000 employees.

However, Mr Bamford warned that policymakers risk undermining investment in family-run enterprises.

He claimed such businesses are being “hunting down” under the changes.

The issue is particularly sensitive in farming, where businesses are often asset-rich but cash-poor and rely on long-term succession planning, potentially forcing land sales or restructuring to meet tax liabilities.

Critics warn the changes could lead to reduced investment and add to fears of a wider wealth and business exodus from the UK.

The reforms, first announced in late 2024, removed the previous ability for some family business assets to be passed down without inheritance tax.

The threshold was later increased from £1m to £2.5m following pressure from rural and business groups.

Supporters of the policy say it ensures larger estates and businesses contribute fairly while protecting smaller operations.

A Treasury spokesman said: “We’ve listened and raised the relief threshold to £2.5m to protect more small family businesses.”

He added that the policy ensures larger businesses “make a fair contribution” while supporting wider economic priorities.

The debate is likely to resonate across the farming sector, where succession planning remains one of the biggest long-term challenges.