British Marine slams ‘crippling’ new UK taxes

The government, which took the reins in July, plans to drastically cut Business Property Relief (BPR) and Agricultural Property Relief (APR) on inheritance tax (IHT), which is currently at 100% – ie businesses and farms handed down to families do not attract inheritance tax.

The new policy, which could be implemented in April 2026, caps the relief at £1 million (€1.2 million), which means anything over that will be taxed at 50%. Having to find that much could force family firms out of business, opponents say, and last week hundreds of tractors drove to Westminster to air farmers’ grievances.

The law will apply not only to farms but to any business that gets handed down to the next generation, and British Marine estimates there could be more than 6,000 such businesses operating in leisure, superyacht and commercial marine.

“The UK marine industry (ie leisure, superyacht and small commercial) is made up of just over 6,300 businesses, 98% of which are micro and small businesses – although we are unable to provide a breakdown of how many independent family run businesses this will include,” PR & Communications manager Emma Slater, with British Marine, told Maritime Journal. “In terms of our own current membership, we estimate we have over 800 family run businesses that could be adversely affected by these planned changes.”

In partnership with other organisations, British Marine has written an open letter to the government urging them to reconsider the plans.

“We stand united with family businesses across the UK to call for a fair, thoughtful, and consultative approach. BPR and APR exist for a reason—to allow businesses to continue operating without crippling tax penalties. The proposed changes risk damaging not only individual businesses but also the broader economic stability of the UK,” said British Marine CEO Lesley Robinson.

Green paradox

The plans are also counter-intuitive when it comes to the country’s stated aims to build more offshore wind farms in line with its green agenda.

“Our marine industry is at a pivotal point having overcome challenges of the pandemic and Brexit and are now eager to maximise future growth opportunities, particularly around the Net Zero agenda,” said Emma Slater. “Largely made up of small businesses, our industry is ready to play its part in meeting the government’s mission objectives – from job creation to establishing a clean energy super power, where UK marine technologies and products help drive the expansion of the offshore wind sector.

“However, unless the UK has a more competitive tax regime, and one that excludes placing IHT on its family-run businesses, many of these potential growth opportunities could be lost to overseas.”

“The Chancellor’s decision to impose an inheritance tax bill on businesses, without proper consultation, risks undermining years of hard work, investment, and careful succession planning by family-run marine enterprises” said Lesley Robinson. “These businesses, often asset-rich but cash-poor, are a vital part of the UK’s marine industry. For many, selling part of their business to meet this tax burden simply isn’t feasible.”