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Britain's Healey plans income tax on family business transfers, Telegraph says - Finance news and analysis from Global Banking & Finance Review
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Britain's Healey plans income tax on family business transfers, Telegraph says

Published by Global Banking & Finance Review

Posted on October 19, 2026

1 min read

· Last updated: October 19, 2026

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Britain May Impose Income Tax on Family Business Transfers, Telegraph Reports

Potential Changes to Taxation on Family Business Transfers

Overview of Proposed Tax Plans

Oct 18 (Reuters) - British finance minister John Healey is drawing up plans to charge income tax on transfers of family businesses to the next generation ahead of the October 28 budget, the Telegraph newspaper said on Sunday. 

Current Tax Structure for Family Business Transfers

Transfers of family businesses can now be structured so they attract capital gains tax, which is charged at a lower rate. 

Official Treasury Response

“As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals,” a Treasury spokesperson said. 

Reporting Credits

(Reporting by Gargi Gupta in Bengaluru; Editing by Clarence Fernandez and Louise Heavens)

Key Takeaways

  • Currently, family business transfers can attract capital gains tax at a lower rate (e.g. 24%), but Healey’s proposal would impose income tax—raising bills significantly (newsminimalist.com).
  • The shift could nearly double tax liabilities for business owners using 'redeemable shares' as the transfer mechanism (newsminimalist.com).
  • This measure forms part of broader efforts to plug a reported £35 billion shortfall ahead of the October 28 Budget amid fiscal constraints (newsminimalist.com).

References

Frequently Asked Questions

What tax change is being proposed for UK family business transfers?
British finance minister John Healey is planning to introduce income tax on transfers of family businesses to the next generation.
How are family business transfers currently taxed in the UK?
Currently, family business transfers can be structured to attract capital gains tax, which is charged at a lower rate.
Who is proposing the new tax change?
The proposal is being drawn up by British finance minister John Healey.
When might the new tax plan be announced?
The plan could be announced ahead of the October 28 budget.
Has the Treasury confirmed the proposal?
A Treasury spokesperson stated that tax decisions are made during fiscal events, not based on speculation.

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