Business Property Relief Family-owned Businesses
2026-04-28
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Response quality
Questions & Answers
Q1
Partial Answer
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Context
Recent reforms to the business property relief scheme have raised concerns about their impact on family-owned businesses.
What assessment has been made of the potential impact of recent changes to business property relief on levels of investment by family-owned businesses?
The reforms to business property relief maintain significant relief for owners of business assets. That is beyond what is available to others and is more generous than at any time under Margaret Thatcher, when the rate of relief was a maximum of 50% on all business assets, including the first £2.5 million.
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Assessment & feedback
The specific impact on investment levels by family-owned businesses was not addressed
Response accuracy
Q2
Direct Answer
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Context
A decision by the Valuation Office Agency to reclassify serviced offices, business centres, and co-working spaces will lead to increased property costs for hundreds of small family businesses across Cornwall.
Hundreds of small family businesses across Cornwall will soon be subject to a significant increase in their property costs as a result of the Valuation Office Agency's decision to reclassify serviced offices, business centres and co-working spaces. Will the Chancellor arrange for me to meet Treasury officials and the VOA to discuss how the impacts of that reclassification may be mitigated?
I thank my hon. Friend for his question. I am aware of the issue that he raises; I have met representatives of the sector in recent weeks to discuss it. It follows changes to case law over recent years, but it is of course an important issue that affects many businesses. I would be happy to meet my hon. Friend to discuss it.
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Assessment & feedback
Response accuracy