‘Disaster’: Advisers raise the alarm on family business tax raid

John Healey’s potential tax raid on family businesses could make handing down companies to the next generation a “disaster” and damage the economy, advisers have warned. The Chancellor is reportedly considering proposals to levy income tax when business owners hand down to their children, potentially almost doubling the bill. Under current rules, transfers can be structured in a way that allows them to attract capital gains tax (CGT) which is charged at a lower rate, but Healey is debating a shake-up in a bid to increase revenue in his maiden Autumn Budget. Tim Stovold, head of tax at Moore Kingston Smith, said: “If the proposals in the consultation are implemented as law, a number of transactions used to return value as a capital gain to a retiring generation, allowing their children to take over the ownership and running of the business, will become much more difficult or impossible.” Investment appeal Healey is debating shutting off a possible route owners frequently