December 23 2025

The Confederation of Passenger Transport today welcomed the Treasury’s partial u-turn on inheritance tax thresholds – a policy change which will benefit thousands of family-owned coach operators.

Eight out of ten coach operators in the UK are family businesses. Many of these businesses are asset intensive, comprising garages with substantial land for parking in addition to the vehicles themselves, which can cost more than £300,000 each.

A year ago, in a survey by the CPT, 71% of coach operators said they would be affected by changes to inheritance tax rules announced in the 2024 Budget, with 46% saying it could affect the viability of their companies.

Today’s decision to raise the threshold for business property relief from £1 million to £2.5 million will take a significant number of these operators out of inheritance tax liability, allowing owners to pass their family businesses onto the next generation.

Graham Vidler, Chief Executive of the Confederation of Passenger Transport, said: “Coach operators are traditionally family businesses, many of which have been painstakingly built up over multiple generations. The sudden imposition of inheritance tax on these companies has been a major source of anxiety and a disincentive to investment.

“The coach industry only recently recovered from the disastrous effects of the COVID-19 pandemic. It was particularly problematic for this tax to be levied just as operators were being encouraged to invest millions in a shift to zero-emission vehicles.

“Coach operators will be pleased that the Treasury has listened to feedback from family businesses and has thought again about this tax hit. It will enable entrepreneurial families across the country to sleep a little more easily and to plan for an ambitious future.”

The coach industry directly employs 54,000 people and supports a further 27,000 jobs in its supply chain. A recent KPMG study commissioned by the CPT found that the industry generates £6.4 billion of economic value annually through employment. On top of this, visitors who arrive by coach spend £8.3 billion a year in towns, cities and tourist destinations across Britain.