“The family tax is a real problem,” warned Jo Bamford, the owner of JCB, as he expressed deep concerns over new inheritance tax reforms that could jeopardize the future of one of Britain’s largest family-owned manufacturing firms.
Founded in 1945, JCB operates 11 factories across the UK and employs over 8,000 people. However, Bamford indicated that the company might shift its base to the United States if the reforms are implemented as planned.
The proposed inheritance tax changes, announced during Labour’s maiden Budget in 2026, include a threshold of £2.5 million for business assets. Any value exceeding this threshold would incur 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 impact of the reforms on JCB’s operations and investments in the UK.
Concerns have been raised among business owners about the implications of these changes, with many fearing they may be forced to sell assets or reduce their investment in the UK. The Treasury, however, defended the reforms, asserting that they aim to protect small family businesses.
In recent years, several wealthy individuals have relocated from the UK due to unfavorable tax policies, further complicating the landscape for family-owned enterprises like JCB. Bamford remains committed to investing in Britain, stating, “You want us, as a family, to invest here in Britain.”
The removal of non-domiciled tax status has also influenced the decisions of affluent individuals considering relocation, adding to the urgency of the situation.
As the debate continues, the future of JCB and its commitment to the UK remains uncertain. Bamford’s comments underscore the critical nature of the inheritance tax reforms and their potential to reshape the business environment for family-owned firms.
Details remain unconfirmed regarding any immediate actions JCB may take in response to these tax changes, but the implications are clear: the company’s future in the UK hangs in the balance.
