Devon holiday park boss calls on Labour delegates to avoid tourism ‘tragedy’

The head of a holiday park at Lynmouth has urged Labour MPs to ‘urgently reconsider’ and row back on the decision to make major changes to inheritance tax rules.

In 2024 the Chancellor announced that 100% Business Property Relief (BPR) and Agricultural Property Relief (APR) would be capped from April 2026, meaning family-run businesses could be faced with huge tax bills when the business is passed on.

Ian James, who owns Lynmouth Holiday Retreat has says Devon holiday parks such as his could be forced to sell up to meet the tax demands, resulting in the loss of jobs and tourism income for the region.

The Labour Party conference in Liverpool, he said, would be a perfect opportunity for MPs to examine a recent report by CBI Economics.

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It claimed the impact of inheritance tax changes on the parks industry will cost the economy more than £130million and lead to 3,000 job losses.

The survey was commissioned by the British Holiday & Home Parks Association (BH&HPA) of which Ian, who owns four parks in Cornwall, Somerset and Devon, is national chairman.

The report also says that many UK camping and holiday parks are already being severely impacted by Government changes to business inheritance tax rules.

Ian said parks are already taking steps to mitigate the threat by cutting back on recruitment and putting investment plans on hold.

Just as worrying, he says, are the CBI's findings that almost one quarter of parks are considering selling up or closing them down permanently.

Above: Ian James, chair of the British Holiday & Home Parks Association, says some Devon parks could be forced to sell their businesses due to the new cap on business property relief.

He added: “It is vital the Government uses its conference to re-examine the business case for this change and considers the true economic impact it will have.

“Large numbers of parks are already reconsidering their futures despite offering a popular, much-loved and sustainable way for people to enjoy a UK holiday.

“Parks contribute so much to the social and economic wellbeing of local communities, and it would be a tragedy if they were forced to close as an unintended consequence of this change.”

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The BH&HPA says Business Property Relief (BPR) has long been a vital mechanism for business owners seeking to pass on business assets without incurring a significant inheritance tax bill.

Under current rules, qualifying business assets can receive relief at 100%, meaning no IHT is due on their transfer either during a lifetime gift or upon death (after two years of ownership).

It said this relief has enabled family-run businesses, private companies and individual business owners to ensure continuity of operations across generations without the burden of a 40% tax on the value of business assets. It said BPR has also supported entrepreneurial activity by allowing owners to reinvest in their businesses with confidence about the tax implications for their heirs.