Succession planning is one of the biggest issue faced by owner managed businesses. If you are planning to leave the business to children or family members, sell it or just wind it up, you should plan to make sure that the most appropriate and tax efficient succession route is taken.
Our expertise within this area will allow us to develop a strategy which ensures that your assets and business are transferred to the right people, at the right time in the most tax efficient manner.
The biggest reliefs available to business owners is Entrepreneur Relief for Capital Gains Tax on the sale of a business or shares in family company. By claiming the Entrepreneur’s Relief capital gains tax payable by the individual will be at a tax rate of 10%, as opposed to 20%, resulting in huge tax savings. Our team of experts will make sure that your business is structured in such a way that you will benefit from the reduced tax rate of 10%.
Also, it is important to consider any Inheritance Tax implications. Passing on shares in a family trading company would qualify for 100% business property relief for Inheritance Tax (IHT) purposes, however, cash received on the sale of the shares is liable to Inheritance Tax of up to 40%. We will make sure that you will benefit from all the available reliefs, in order to preserve your wealth when you are passing it on to your younger generations.
How can we help?
If you would like us to assist you in increasing the value of your business while you own it as well as when you transfer it, make sure that your business is structured in the most tax efficient way and plan well in advance for any potential Inheritance Tax liabilities, please contact us.