'Inheritance tax forcing us to sell holiday parks'

Ian James says his son, Chris, will need to sell two of the family's holiday parks

The owner of a group of family-run holiday parks says some of his businesses will need to be sold and jobs may be lost because of inheritance tax changes.

Ian James, owner of Coast and Country Holiday Parks, says changes announced last Autumn are a "massive blow" to family businesses in the holiday industry.

Mr James is making plans to pass down his business to his son, Chris, when he dies, who he says will need to sell some of the parks they own in order to cover the tax.

The government says most estates claiming business property relief will be unaffected by the changes and the money raised will go towards paying for public services.

Mr James runs four holiday parks including in at Brean in Somerset, Lynmouth in north Devon, St Anns Chapel in Cornwall and Saltash in Cornwall.

He is also the national chairman of the Gloucestershire-based British Holiday and Home Parks Association

He told the BBC: "At the moment the government gives 100% business property relief, so there is no tax on a trading business being handed down to family".

Last autumn the government announced plans, beginning in April 2026, to tax inherited business assets worth more than £1m at a rate of 20%.

The changes affect farms and other businesses being passed down through families, including manufacturers and retailers.

Chris, Ian's son, says the future is uncertain for the business

"We're a group of four holiday parks, we employ just under 30 people," Mr James said.

"With the current situation the way it is, then probably two of the parks would have to be sold in order to cover the tax liability which would mean that they wouldn't be family-owned parks.

"We don't know what would happen to them but they wouldn't be run the same, they probably wouldn't employ the same people as they do now.

"It would mean almost certainly job losses and cutbacks if corporates came in and took over".

A spokesperson for HM Treasury said: "Most estates claiming Agricultural and Business Property Reliefs will be unaffected by the changes.

"The latest data shows that over half of Business Property Relief, worth £553m, goes to the wealthiest 4% of estates.

"The money raised [by the tax changes] will go towards public services we all rely on every day instead."