There were an estimated 5.13 million family businesses in the UK in 2023, more than 93% of all private sector firms, according to the Family Business Research Foundation with Cebr (State of the Nation 2023, fbrf.org.uk, as at July 2026, subject to change).
This piece sets out the published data behind that headline, and what it may mean for the families who own those businesses. It draws on official government statistics from the Department for Business and Trade and HM Revenue & Customs, alongside the family-business sector research published by the FBRF and Cebr, which is clearly attributed as a secondary source throughout. Where a figure could not be confirmed from a named source, it is not stated. Figures are current as at July 2026 and are subject to change.
How many family businesses are there in the UK?
The Family Business Research Foundation, working with Cebr, estimated about 5.13 million family businesses in the UK in 2023, more than 93% of all private sector firms, with roughly 1.05 million of them employing staff (FBRF with Cebr, State of the Nation 2023, as at July 2026, subject to change). For context, official figures put the whole UK private sector at about 5.69 million businesses at the start of 2025 (DBT, gov.uk, as at July 2026, subject to change).
There is no single official count that labels a business as family-owned. The government's headline business count is the Department for Business and Trade's Business Population Estimates, which reported 5,690,265 private sector businesses at the start of 2025, of which 99.85% were small and medium-sized enterprises (DBT, gov.uk, start of 2025, as at July 2026, subject to change). The family-business share sits on top of that base, using survey-based definitions rather than a separate government register, which is worth keeping in mind when comparing the numbers.
Key figures at a glance
Family businesses account for more than nine in ten private sector firms and a large share of jobs and output, on the FBRF and Cebr figures for 2023 (fbrf.org.uk, as at July 2026, subject to change). Each row below is a published figure with its source and reference period. Official government counts and sector research use different reference dates, so they are labelled separately.
| Figure | Level | Source & period |
|---|---|---|
| Family businesses in the UK | About 5.13 million | FBRF with Cebr, 2023 |
| Share of all private sector firms | 93.2% | FBRF with Cebr, 2023 |
| People employed by family businesses | 15.8 million | FBRF with Cebr, 2023 |
| Share of private sector employment | 57% | FBRF with Cebr, 2023 |
| Gross value added (GVA) | £985 billion | FBRF with Cebr, 2023 |
| Turnover | £2.8 trillion | FBRF with Cebr, 2023 |
| Tax contribution | £422 billion | FBRF with Cebr, 2023 |
| Family businesses with employees | About 1.05 million | FBRF with Cebr, 2023 |
| All UK private sector businesses | 5.69 million | DBT, gov.uk, start of 2025 |
| SMEs as a share of all businesses | 99.85% | DBT, gov.uk, start of 2025 |
| Estates paying more IHT from APR/BPR reform | Up to 1,100 (UK) | HMRC, gov.uk, 2026 to 2027 |
Family-business figures are from the Family Business Research Foundation with Cebr and are clearly attributed as a secondary source. Official counts are from the Department for Business and Trade and HM Revenue & Customs. All figures as at July 2026 and subject to change. Full sources are listed in the methodology section below.
Jobs, turnover and tax
On the FBRF and Cebr figures, family businesses employed 15.8 million people in 2023, around 57% of private sector employment, and generated £2.8 trillion of turnover and £985 billion of gross value added (FBRF with Cebr, State of the Nation 2023, as at July 2026, subject to change). The report also puts the sector's tax contribution at £422 billion for the year.
Placed against the whole private sector, the scale is easier to read. The table below compares the family-business estimates for 2023 with the official Business Population Estimates for the start of 2025. The dates differ, so the comparison is broad rather than exact.
| Measure | Family businesses (2023) | Whole UK private sector (start of 2025) |
|---|---|---|
| Businesses | About 5.13 million (FBRF/Cebr) | 5.69 million (DBT, gov.uk) |
| Employment | 15.8 million (FBRF/Cebr) | 28.1 million (DBT, gov.uk) |
| Turnover | £2.8 trillion (FBRF/Cebr) | £5.52 trillion (DBT, gov.uk) |
Family-business estimates: FBRF with Cebr, 2023. Whole private sector: DBT Business Population Estimates, start of 2025. Reference dates differ, so figures are broadly indicative. All as at July 2026 and subject to change.
Concentration varies by nation. The FBRF and Cebr research reports that family businesses account for more than 70% of private sector turnover in both Wales and Northern Ireland, a higher share than the UK average (FBRF with Cebr, 2023, as at July 2026, subject to change).
Family businesses and inheritance tax
From 6 April 2026, qualifying business and agricultural property share a single 100% relief allowance of £2.5 million per person, with 50% relief on qualifying value above it, and HMRC expects up to 1,100 estates across the UK to pay more inheritance tax in 2026 to 2027 as a result (HMRC, gov.uk, reference year 2026 to 2027, as at July 2026, subject to change).
That figure breaks down into up to 915 estates holding business assets and up to 185 claiming agricultural property relief, with HMRC noting that more than 80% of estates claiming only business property relief are forecast to face no additional charge (HMRC, gov.uk, 2026 to 2027, as at July 2026, subject to change). The standard inheritance tax rate remains 40%, charged only above the available tax-free thresholds, and the nil-rate band stays at £325,000 per person, frozen to the end of the 2030-31 tax year (5 April 2031) (gov.uk, as at July 2026, subject to change).
For the detailed rules on how the relief works, see our guide to business property relief, and for how it sits within the wider tax, Inheritance Tax Explained. Because so many UK firms are family-owned, questions about succession and tax tend to come up alongside the wider estate planning guide rather than in isolation.
What the numbers mean
Read together, the data points one way: family businesses are not a niche. On the FBRF and Cebr figures, more than nine in ten private sector firms are family-owned, and they account for well over half of private sector jobs (FBRF with Cebr, 2023, as at July 2026, subject to change). Most of those firms are small, which fits the official picture in which 99.85% of all UK businesses are SMEs (DBT, gov.uk, start of 2025, as at July 2026, subject to change).
The scale can be misleading if it is read as uniform. A definition drawn from surveys is not the same as a government register, so the family-business count is an estimate rather than a headcount, and different studies may reach different totals. The comparison in this piece also mixes reference dates, 2023 for the sector research and the start of 2025 for the official business count, so it shows orders of magnitude rather than precise ratios.
The headline is that family firms are the majority, not the exception. The detail is that most are small, the counts are estimates, and the tax reforms bite at the larger end.
On inheritance tax, the numbers suggest the reforms are aimed at a narrow band. Up to 1,100 estates paying more in 2026 to 2027 is a small share of the tens of thousands of estates each year, and it sits well below the millions of family firms in the wider count (HMRC, gov.uk, 2026 to 2027, as at July 2026, subject to change). That said, a business held mostly in one illiquid asset can be harder to pass on than a headline percentage implies, which is why many owners in this position choose to model their own position with a qualified professional rather than rely on averages.
Scotland and Northern Ireland
The FBRF and Cebr research covers the whole of the UK and reports family businesses accounting for more than 70% of private sector turnover in both Wales and Northern Ireland (FBRF with Cebr, 2023, as at July 2026, subject to change). Inheritance tax and the reformed business and agricultural property reliefs apply UK-wide, so the £2.5 million allowance and 50% rate above it are the same across the nations (gov.uk, as at July 2026, subject to change). What differs is succession law. Scotland has its own rules, including legal rights that can entitle a spouse and children to a fixed share of an estate, and it uses confirmation rather than a grant of probate. Where a business or estate touches more than one jurisdiction, it can be worth taking advice in each.
Sources and methodology
This piece uses official UK government statistics for the whole business population and the inheritance tax reforms, and the Family Business Research Foundation with Cebr for family-business-specific figures, which are clearly attributed as a secondary source. Where a figure could not be confirmed from a named source, it is not stated. All figures are current as at July 2026 and are subject to change.
- Department for Business and Trade, Business Population Estimates for the UK and regions 2025, for the total number of private sector businesses, the SME share and private sector employment and turnover at the start of 2025 (official statistics in development): gov.uk.
- Family Business Research Foundation with Cebr, State of the Nation: the UK family business sector in 2023, for the number of family businesses, their share of firms, employment, GVA, turnover, tax contribution and the Wales and Northern Ireland turnover shares (secondary source): fbrf.org.uk (reference year 2023).
- HMRC tax information and impact note, changes to agricultural property relief and business property relief, for the £2.5 million allowance, the 50% rate above it and the affected-estate counts: gov.uk (reference years 2026 to 2027 onward).
- gov.uk, Inheritance Tax, for the 40% standard rate and the £325,000 nil-rate band, frozen to the end of the 2030-31 tax year (5 April 2031): gov.uk.
Frequently asked questions
How many family businesses are there in the UK?
The Family Business Research Foundation, with Cebr, estimated about 5.13 million family businesses in the UK in 2023, more than 93% of all private sector firms, with roughly 1.05 million employing staff (FBRF with Cebr, 2023, as at July 2026, subject to change). There is no separate government register of family businesses, so this is a survey-based estimate rather than an official headcount.
What share of the UK economy do family businesses account for?
On the FBRF and Cebr figures for 2023, family businesses employed 15.8 million people, around 57% of private sector employment, and generated £2.8 trillion of turnover and £985 billion of gross value added (FBRF with Cebr, 2023, as at July 2026, subject to change). These are sector-research estimates, clearly attributed as a secondary source rather than official statistics.
How many businesses are there in the UK in total?
Official figures put the UK private sector at 5,690,265 businesses at the start of 2025, of which 99.85% were small and medium-sized enterprises (DBT, gov.uk, start of 2025, as at July 2026, subject to change). This is the government's headline business count and does not separately label businesses as family-owned.
How will inheritance tax reform affect family businesses?
From 6 April 2026, qualifying business and agricultural property share a 100% relief allowance of £2.5 million per person, with 50% relief above it, and HMRC expects up to 1,100 estates across the UK to pay more inheritance tax in 2026 to 2027 (HMRC, gov.uk, 2026 to 2027, as at July 2026, subject to change). The impact depends on the size and structure of each business.
Are these family business statistics official government figures?
Only partly. The total business population, the SME share and the inheritance tax reform figures come from the Department for Business and Trade and HMRC (gov.uk, as at July 2026, subject to change). The family-business-specific counts come from the Family Business Research Foundation with Cebr, a reputable named report used here as a clearly-attributed secondary source rather than official statistics.
Do family business figures differ across the UK nations?
Yes, concentration varies. The FBRF and Cebr research reports family businesses accounting for more than 70% of private sector turnover in both Wales and Northern Ireland, above the UK average (FBRF with Cebr, 2023, as at July 2026, subject to change). Inheritance tax reliefs apply UK-wide, but succession law differs, particularly in Scotland, so cross-border estates can benefit from local advice.