The Berry and Rudd families, owners of the esteemed London wine merchant Berry Bros & Rudd, have raised concerns over recent inheritance tax reforms that could threaten the future of their 376-year-old business.
The Labour government’s proposed 50% reduction in business property relief—which allows family-owned businesses to pass down assets tax-free—has left the families grappling with the prospect of significant new costs.
Emma Fox, CEO of Berry Bros & Rudd, described the policy change as a “body blow” to the family-run institution. The company’s property holdings, valued at around £90 million, include its historic headquarters on Pall Mall, a vast fine wine storage facility in Kent, and a 50% share in the Hambledon Vineyard in Hampshire.
Emily Rae, CFO of the business, highlighted the importance of the relief, saying, “It’s something the families have relied upon to keep the business within the family.” The shift has prompted the families to reconsider their long-term investment strategies, with potential changes to their balance sheet and future asset allocation.
Fox, a former executive at Asda and Bass, warned that the inheritance tax changes might hinder the company’s ability to make long-term investments, impacting its “patient capital” approach focused on generational growth rather than short-term returns. “This budget forces us to operate differently,” she added.
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