Story perspectives

Healey Proposes 45% Tax on Family Business Transfers

By Drooid · Oct 19, 2026, 2:31 PM UTC · How we work

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Summary

Story summary

Chancellor John Healey proposes taxing family business transfers at up to 45% income tax.
The change would replace the 24% capital gains tax with a 45% income tax rate.
A £1 million firm passed to children could face a £450,000 tax bill, up from £240,000.
Accountants warn the proposal could drive many family firms toward extinction or force sales.

History

Historical Context

Finance Acts regularly reshape UK taxation; the 2010 Finance (No 2) Act lowered the headline capital gains tax rate to 18%, illustrating such shifts. Chancellor John Healey’s 2024 proposal to replace the capital gains tax on family-business transfers with an income-tax charge follows this tradition of election-driven reform, overseen by the Treasury and HMRC.

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Story summary

Chancellor John Healey proposes taxing family business transfers at up to 45% income tax.
The change would replace the 24% capital gains tax with a 45% income tax rate.
A £1 million firm passed to children could face a £450,000 tax bill, up from £240,000.
Accountants warn the proposal could drive many family firms toward extinction or force sales.

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