Members of the House of Lords Finance Bill sub-committee said there was a ‘significant risk that the death of a business’s founder would result in a material reduction in its value’.

The Lords recommended ‘the government should commission research into the impact of the death of a key person on the valuation of a business, with a view to considering whether further changes are needed to deal with the situation where the death results in the business having a materially reduced valuation’.

It was clear from the hearings that business owners were not aware of what could happen if a director were to pass away early.