Billionaire JCB heir threatens to quit Britain over inheritance tax raid
The billionaire heir to the construction empire is the latest in a string of entrepreneurs threatening to relocate in response to Labour tax hikes
The heir to the multibillion-pound manufacturing empire, JCB, has threatened to leave Britain in response to Rachel Reeves’ raid on inheritance tax.
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Jo Bamford, son of JCB chairman Lord Bamford, said he was considering relocating to the US to avoid paying the 20pc tax on assets valued at over £2.5m.
He described the family tax, which came into force last week, as a “real problem” and said the Staffordshire-based firm could “quite easily become an American business".
“I love being in Britain,” He said. “I love being here. I love our factories. But I would say to a political party of any stripe, there’s only so much you can ultimately do.”
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JCB, founded in 1945, is one of Britain’s largest family-owned manufacturing companies, with 11 factories and over 8,000 workers.
Mr Bamford accused Labour of “hunting down” family businesses through its inheritance tax raid, leading him to reconsider the company’s future in the UK.
He told City AM: “You want us, as a family, to invest here in Britain.
“You know, we have businesses everywhere around the world. We have them in India, China and Brazil.”
He added: “I’m here because I’m British, and I’m here and I employ people in Britain because I like British people and I like being in my part of the community.”
The policy, announced in late 2024, prevents family business owners from passing down assets without paying inheritance tax.
From April, full tax relief will only apply to the first £2.5m of assets upon the business owner’s death, and everything above this threshold will be subject to a 20pc tax.
The threshold was previously set at £1m but was extended following backlash from rural voters.
Many business owners have expressed concern that they may be forced to liquidate assets or restrict investment to pay the tax, and have threatened to leave the UK.
This has prompted concern around Britain’s wealth exodus, which was kicked into high gear in response to the Chancellor’s decision to abolish non-dom status.
Noteworthy cases include John Fredriksen, a shipping tycoon and Lakshmi Mittal, a steel magnate.
A spokesperson for the Treasury said: “We’ve listened and raised the relief threshold to £2.5m to protect more small family businesses, while ensuring the largest make a fair contribution so we can deliver support for families and businesses, including cutting the cost of living.”