Glastonbury founder Michael Eavis has transferred ownership of the legendary festival to his daughter and a family trust, a move that has split opinion among wealth experts. With the festival’s pre-tax profits doubling to £6 million in 2024 and revenues hitting £68 million, critics say the lifelong socialist, 89, is sidestepping up to £80 million in inheritance tax (IHT). Others argue the move is responsible succession planning to keep the event and its charitable legacy in operation.
[See also: Inheritance tax explained: How does it work and who is affected?]
The October 2024 transfer of the business to Emily Eavis and three-quarters to a trust was reported by The Times this week, just as the annual festival prepares to welcome headline acts including Rod Stewart and Olivia Rodrigo. Experts place Glastonbury’s value between £150 and £400 million, but the exact figure is unknown due to the festival’s ‘unique status and charitable ethos,’ the paper reported.
The transfer took place shortly before Rachel Reeves announced changes to IHT rules, introducing a 20 per cent charge on family businesses valued above £1 million.
[See also: Inheritance tax racks up another record take]
Tatiana Watson, senior director at consultants Alvarez and Marsal, said The Times report ‘missed the point’. She believes that the festival, though profitable, wouldn’t generate enough each year to cover an £80 million inheritance tax bill – even if spread over 10 years – and such a bill would likely force the business to be sold.
The Tax Advice Network, writing on LinkedIn, said the report ‘perpetuates the idea that conventional planning to take advantage of general IHT exemptions is reprehensible tax avoidance’.
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However, some argue that using IHT planning tools is out of line with Eavis’ socialist credentials.
‘Is Eavis’s financial planning not a little hypocritical? Socialists are not supposed to engage in dynastic hoarding,’ wrote The Standard‘s India Block.
‘There is nothing wrong with what he has done apart from Eavis has espoused all sorts of left wing causes and he now wants to do what nasty rich capitalists do and avoid paying tax,’ wrote Active Value Capital’s David Wise on LinkedIn.
Sarah Jordan, real estate lawyer at Moore Barlow, told Spear’s that Eavis’ actions mirror ‘what all prudent landowners will be doing’.
Jordan said that in Eavis’ case it was ‘quite critical’ that he acted now because of his age. Under Inheritance Tax rules, no tax is due on gifts if the person giving them survives for seven years.
A Glastonbury spokesperson said: ‘With his 90th birthday approaching, Michael Eavis has proceeded with his long-held plan to pass control of the festival over to his daughter, Emily. The past few years have already seen Emily take over the day-to-day organisation of the event, and this latest change was simply another part of that process.’
The festival will ‘never be sold,’ the spokesperson added.
