Rachel Reeves's inheritance tax raids forcing major British firm abroad

Joe Sledge
Mon, 13 Apr 2026 18:54:09 +0000

Jo Bamford, heir to the JCB manufacturing empire, has warned the company could shift its base to the United States in response to Labour’s inheritance tax reforms.

The son of JCB chairman Lord Bamford said Labour’s policies risk undermining family-owned businesses.

"The family tax is a real problem," Mr Bamford said, adding JCB "could quite easily become an American business".

He said the party was "hunting down" family enterprises through its approach to inheritance tax.

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Despite expressing support for Britain, Mr Bamford cautioned there are limits to what businesses can absorb, The Telegraph reports.

"I would say to a political party of any stripe, there's only so much you can ultimately do," he said.

JCB is one of Britain’s largest family-owned manufacturing firms, having been founded in 1945.

The Staffordshire-based company operates 11 factories across the UK and employs more than 8,000 people.

Mr Bamford said his commitment to Britain remains strong, pointing to his ties to the country and its workforce.

"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," he said.

He also highlighted the company’s global reach, noting its operations across multiple international markets.

"We have businesses everywhere around the world. We have them in India and China and Brazil," Mr Bamford said.

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The comments come amid changes to inheritance tax rules affecting business assets.

From April, only the first £2.5million of business assets qualifies for full relief when passed on after death.

Any value above that threshold is subject to a 20 per cent tax charge.

Labour had initially proposed a £1million limit before increasing it following opposition.

Business owners have raised concerns the changes could force them to sell assets or reduce investment to meet tax liabilities.

"You want us, as a family, to invest here in Britain," Mr Bamford said.

The reforms come alongside a wider trend of wealthy individuals relocating from the UK.

Several figures, including Alan Howard, John Fredriksen, and Lakshmi Mittal, have moved abroad in recent years.

The removal of non-domiciled tax status has also been cited as a factor influencing such decisions.

Sir Rocco Forte described the inheritance tax changes as "one of the main causes for the exodus."

The Treasury defended the policy, stating: "We've listened and raised the relief threshold to £2.5million 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."