NEWSROUND Industry leaders warn of Labour’s IHT implications
Family-owned builders merchants may need to think differently about their succession plans, following the Labour Government’s changes to Inheritance Tax, announced the Budget in October. That’s according to Chris Hayward, CEO of independent merchant buying group NMBS, who says: “Many people are realising that the new proposals go far beyond Agricultural Property Relief (APR) and also includes Business Property Relief (BPR). This could have significant consequences for many family-owned builders’ and plumbers’ merchants.”
Hayward explains that APR and BPR previously allowed 100% inheritance tax relief on qualifying business and agricultural assets,
with no cap. The new rules introduce a threshold; combined agricultural and business property assets up to £1 million will still receive 100% relief, but anything after that will receive 50% relief. This means they will be taxed at an effective rate of 20%, payable over ten years interest free. He says that the usual caveats apply in respect of being able to transfer property at least seven years before death and being able to transfer standard household tax allowances, if the assets are owned by a couple. However, many family-owned business will now need to prepare for inheritance tax in ways that were previously unnecessary. At the Builders Merchants Federation, CEO John Newcomb,
Kronospan fined £400k for worker leg loss
Wood panel manufacturer Kronospan has been fined £400,000 after a worker suffered life-changing injuries at its factory in Chirk, near Wrexham.
In March 2021 a pack of waste MDF sheets weighing around 350kg fell from a trailer and landed on the left leg of Mark Hughes. The injuries were so serious they resulted in Hughes having his leg amputated below the knee. He has since had to move to an accessible house., is no longer able to carry on with his hobbies and struggles to climb stairs.
An investigation by the Health and Safety Executive (HSE) found that a colleague of Hughes had loaded a flatbed trailer with waste MDF sheets for him to transport across the site to be destroyed. When he began to take off the straps holding the sheets in place, a pack fell off the trailer and landed on top of him. The road across the site was poorly maintained and had lots ofpotholes. The investigation also found that there was no suitable risk assessment or system of work in place specifically relating to the risks associated with transporting waste MDF sheets. Kronospan Limited of Chirk, Wrexham pleaded guilty to breaching Section 2(1) of the Health & Safety at Work etc. Act 1974. Alongisde the fine, it was also ordered to pay costs of £4,701. Hughes has been able to return to the company, but only in a part-time capacity.
He said: “My injuries have changed everything in my life. Everything now just takes a lot of planning to do and I won’t go anywhere that has a lot of steps.”
Right: John Newcomb. Far right: Chris Hayward
says: “It’s important to acknowledge that the consequences of the Budget don’t wipe out what it was aiming to do, which is stimulate economic growth.
“Construction is absolutely critical to the lifeblood of the UK economy, but we are hearing across the industry that the changes in inheritance taxation could limit the future of the sector, with many private and family businesses across our membership reporting back that the impact of Business Property Relief will damage enterprise.
“The end result could be a scaling back of the operations at SME merchants, suppliers and even builders in light of the changes, and that will have a significant impact on the whole economy.”
The BMF is now raising the matter with senior government ministers, to call for a discussion on how best to address the challenges.
Macs Builders Merchants to close after serving the Isle of Man for 44 years
Macs Builders Merchants has announced it will be closing its doors after serving the Isle of Man for 44 years.
The merchant revealed on Facebook that it has agreed a deal with someone to take over the site.
The announcement stated:
“We would like to take this opportunity to thank all of our fantastic staff and customers for their hard work and loyalty over the last 44 years.
“We can also confirm that an agreement in principle has been reached with a third party who instends to continue trading.”
Elliotts Builders Merchants acquires Futuremost Group
Elliotts has acquired Futuremost Group, a manufacturer and installer of bespoke aluminium and PVCu window units based in Portsmouth.
The business now joins other brands in the
Elliotts portfolio, which includes Elliotts Builders Merchants, Elliotts Living Spaces, and Elliotts Premier Roofing.
Futuremost will continue to operate under its existing name and retain all 32 of its current employees.
Dave Barrett, Managing Director of Futuremost, said: “Joining the Elliotts group presents an exciting opportunity to grow alongside a business with a strong heritage. Our focus remains on delivering a first- class customer experience, supported by both our trusted brands.” Tom Elliott, CEO of Elliotts, added: “Our goal is to become a complete one-stop shop for our customers, and the acquisition of Futuremost is a significant step towards achieving that.”
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www.buildersmerchantsjournal.net December 2024
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