Entrepreneur Paul Simkiss has warned that other SMEs will follow his lead in selling their business because of Rachel Reeves’ changes to inheritance tax.
Earlier this week it was revealed that 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 Instrument Control Services (ICS), which was acquired in 2025.
The leading engineering solutions provider works across multiple sectors, including energy, utilities and infrastructure and has a combined turnover of £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 United Infrastructure, Paul Simkiss said Labour’s changes to inheritance tax rules had been the ‘final straw’.
He asked: “Why is Rachel Reeves decimating SMEs in the country when they employ the vast majority of people in the UK?
“It’s frightening. Other SMEs will have to follow suit. Within a generation, SMEs are going to be eradicated because they’re not going to be able to continue.”
The changes to inheritance tax will have a significant impact on SME owners and family farms.
Previously, 100 per cent Business Relief meant family firms could often be passed on tax-free upon death.
However, from 6th April 2026, 100 per cent relief will only apply to the first £2.5m of combined business and agricultural assets.
For the value of business assets exceeding £2.5m, a 20 per cent inheritance tax will be applied.
Simkiss, who was included in BusinessCloud’s 2025 Northern Leaders list, said: “This would have had a massive impact on our business. For example, let’s say the company was worth £10m. If my wife and I both died, our estate would have to pay £1.5m within six months of the death.
“I haven’t got £1.5m so where would they get it from? They’d 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.
“The interest rate on a £1.5m debt would be quite substantial and it’s not fair to put that on to my estate, my executors and my kids.
“The risks and the ‘what ifs’ 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?
“The acquisition by United Infrastructure is good for the business and will support the company’s growth and the staff going forward.
“I’m 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.”
Paul Simkiss, CEO, Simkiss Control Systems
He founded Simkiss Control Systems in 1999 at the age of 28 while his wife was pregnant with their second child and his first office was his daughter’s nursery.
“I moved the cot out and put a desk in there and worked from there,” he said.
In year one the company had a turnover of £83,000, growing to £380,000 in year two.
“People took a chance on me and gave me an opportunity,” said Simkiss.
However, the company’s future was thrown into doubt when a customer didn’t pay a £38,000 invoice.
“That was a bitter pill to swallow in our second year of business,” he said. “It taught me a lesson that I didn’t want to be down the chain of suppliers. I started targeting blue chip companies and being directly on the frameworks.”
Financielle tops 350,000 downloads after GC Angels investment
Eight years after launching Simkiss Control Systems, the entrepreneur acquired Varcol Electrical Services, where he’d 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.
“We go from a blank sheet of paper to a completely commissioned site,” said Simkiss. “We do the full turnkey service.”
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 Stoke-based Instrument Control Services (ICS).
United Infrastructure, who are a leading provider of solutions for the UK’s critical utility and social infrastructure, first approached Simkiss to buy his business three years ago before he finally changed his mind.
Simkiss said: “I’m not finished. I’m too young to retire. I’ve got a lot to do. We can make massive headway in the industry.”
Simkiss, Simon Bodill and the senior management team, will remain at Simkiss driving forward the company.