A family-owned holiday park business in the UK is confronting difficult decisions, including selling some of its properties and potentially making staff redundancies, due to upcoming inheritance tax reforms.
Ian James, owner of Coast and Country Holiday Parks and national chairman of the British Holiday and Home Parks Association, describes the new tax changes as a “massive blow” to the holiday industry. He revealed that his son, Chris James, will be compelled to sell some parks to meet the significant tax liabilities when the business is passed on.
Currently, businesses like theirs benefit from 100% business property relief, which exempts them from inheritance tax when passed down within families. Ian explained to the BBC, “This relief allows trading businesses like ours to be handed down without incurring tax.”
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Coast and Country Holiday Parks operates four sites – located in Brean, Somerset; Lynmouth, Devon; St Ann’s Chapel, Cornwall; and Saltash, Cornwall. The group employs nearly 30 people across these locations.
Ian warned that under the new tax rules, two of their four parks would likely need to be sold to cover the tax bill. “Selling would mean that these parks would no longer be family-owned, and their management and staffing might change dramatically,” he said. “It could lead to job losses and reductions in services if corporate buyers take over.”
The inheritance tax changes, announced by Chancellor Rachel Reeves in the Autumn Budget, will impose a 20% tax rate on inherited business assets valued above £1 million starting April 2026. This reform affects a range of family enterprises including farms, manufacturers, and retailers.
A Treasury spokesperson responded, stating, “Most estates claiming Agricultural and Business Property Reliefs will be unaffected. The data shows that over half of Business Property Relief, amounting to £553 million, goes to the wealthiest 4% of estates. The revenue generated from these changes will help fund essential public services relied upon by everyone.”
The upcoming reforms have raised concerns about the sustainability of family-run businesses and their long-term contribution to local economies and communities.