The UK government has been warned its changes to inheritance tax could force one of the country’s most successful businesses to relocate to the US.
Jo Bamford, whose father Anthony Bamford owns the digging equipment maker JCB, said moving across the Atlantic may be the best way to protect jobs and prevent businesses within the company’s portfolio from being sold off when his father dies.
Mr Bamford Snr donated millions to the Conservative party before switching his support to Nigel Farage’s Reform.
“The family tax … is a real problem,” Jo Bamford said, referring to the move to levy 20 per cent tax on family business assets worth more than £2.5 million.
“It could quite easily become an American business. I love being in Britain. I love being here. I love our factories here. But I would say to a political party of any stripe, look, there’s only so much you can ultimately do.”
Mr Bamford pointed out that the company already has operations around the world. He told City AM: “You want us, as a family, to invest here in Britain. 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 company doubled the size of its factory under construction in Texas in response to US President Donald Trump’s announcement of tariffs on international businesses. JCB, which was established in 1945 by Jo Bamford’s grandfather Joseph, has been manufacturing in the US for 50 years.
Mr Bamford, whose family also owns food and drink firm Daylesford and a luxury soap brand, said he was born in the US during the 1970s after Britain's Labour government attempted to nationalise the business.
In a move announced in Chancellor Rachel Reeves’ maiden budget which came into effect last week, Prime Minister Keir Starmer’s government will levy inheritance tax on family-owned companies. It will be the first time in decades such as charge has applied.
Under the new rules, all shareholdings in a family business valued at more than £2.5 million are subject to a reduced inheritance tax rate of 20 per cent.
Farms and family-run firms had been exempt from the tax when they were passed down, but the government was concerned this exemption was being exploited by the most wealthy.
Multiple businesses have warned that the tax demands could spell their demise. Entrepreneur James Dyson and hotelier Sir Rocco Forte have said their children are likely to sell off parts of their empires to pay the tax.
The decision to change the inheritance tax rules came at the same time as the move to abolish non-dom status. The latter move has led some people who live in the UK but are not domiciled there for tax purposes to reconsider their options, with many moving to the UAE.
