Entrepreneur Paul Simkiss has warned that other SMEs will follow his lead in selling their business because of Rachel Reeves鈥� changes to inheritance tax.
Earlier this week it was revealed that聽United Infrastructure had acquired Rochdale-based Simkiss Group for an undisclosed sum.
Simkiss Group consists of Simkiss Control Systems, which was founded in 1999, and聽Instrument Control Services (ICS), which was acquired in 2025.
The聽leading engineering solutions provider works across multiple sectors, including energy, utilities and infrastructure and聽has a combined turnover of 拢20.5m and employs 152 staff.
Simkiss Control Systems designs and builds bespoke electrical control systems for a range of blue-chip clients, including Amazon, Network Rail and Siemens.
Although he welcomed the acquisition by聽United Infrastructure, Paul Simkiss said Labour鈥檚 changes to inheritance tax rules had been the 鈥榝inal straw鈥�.
He asked: 鈥淲hy is Rachel Reeves聽decimating SMEs in the country when they employ the vast majority of people in the UK?
鈥淚t鈥檚 frightening. Other SMEs will have to follow suit. Within a generation, SMEs are going to be eradicated because they鈥檙e not going to be able to continue.鈥�
The changes to inheritance tax will have a significant impact on SME owners and family farms.
Previously, 100 per cent聽 老九品茶 Relief meant family firms could often be passed on tax-free upon death.
However, from聽6th April 2026, 100 per cent relief will only apply to the first聽拢2.5m聽of combined business and agricultural assets.
For the value of business assets exceeding 拢2.5m, a 20 per cent inheritance tax will be applied.
Simkiss, who was included in 老九品茶Cloud’s 2025 Northern Leaders list,聽 said: 鈥淭his would have had a massive impact on our business. For example, let鈥檚 say the company was worth 拢10m. If my wife and I both died, our estate would have to pay 拢1.5m within six months of the death.
鈥淚 haven鈥檛 got 拢1.5m聽so where would they get it from? They鈥檇 have to sell the company but without me it would be a distressed sale so it would probably go for half that. The changes will have a significant impact on SMEs.
鈥淭he interest rate on a 拢1.5m聽debt would be quite substantial and it鈥檚 not fair to put that on to my estate, my executors and my kids.
鈥淭he risks and the 鈥榳hat ifs鈥� were the things I took into consideration before deciding to sell. If something happened what would I do to support the business as I was effectively a one-man band?
鈥淭he acquisition by聽United Infrastructure聽is good for the business and will support the company鈥檚 growth and the staff going forward.
鈥淚鈥檓 delighted to be remaining as CEO for at least another three years and have rolled over a significant portion of the proceeds from the sale back into the business.鈥�
Paul Simkiss, CEO, Simkiss Control Systems
He founded Simkiss Control Systems in 1999 at the age of 28 while his wife was pregnant with聽their second child and his first office was his daughter鈥檚 nursery.
鈥淚 moved the cot out and put a desk in there and worked from there,鈥� he said.
In year one the company had a turnover of 拢83,000, growing to 拢380,000 in year two.
鈥淧eople took a chance on me and gave me an opportunity,鈥� said Simkiss.
However, the company鈥檚 future was thrown into doubt when a customer didn鈥檛 pay a 拢38,000 invoice.
鈥淭hat was a bitter pill to swallow in our second year of business,鈥� he said. 鈥淚t taught me a lesson that I didn鈥檛 want to be down the chain of suppliers. I started targeting blue chip companies and being directly on the frameworks.鈥�
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Eight years after launching Simkiss Control Systems, the entrepreneur acquired聽Varcol Electrical Services, where he鈥檇 previously worked.
Simkiss specialises in the design and build of control systems, control panels and switchgear, with services spanning installation, testing, commissioning and ongoing maintenance, predominantly in the utilities sector.
鈥淲e go from a blank sheet of paper to a completely commissioned site,鈥� said Simkiss. 鈥淲e do the full turnkey service.鈥�
In 2025, the business acquired new 73,000 sq ft premises in Rochdale, more than triple the size of its previous headquarters in Middleton.
In April, the company acquired聽Stoke-based Instrument Control Services (ICS).
United Infrastructure, who are a聽leading provider of solutions for the UK鈥檚 critical utility and social infrastructure,聽first approached Simkiss to buy his business three years ago before he finally changed his mind.
Simkiss said:聽鈥淚鈥檓 not finished. I鈥檓 too young to retire. I鈥檝e got a lot to do. We can make massive headway in the industry.鈥�
Simkiss, Simon Bodill and the senior management team, will remain at Simkiss driving forward the company.