Whether there is concern about succession or a reluctance to burden family with a large inheritance tax bill, succession planning is important.
For privately owned companies, future succession planning is essential to the long term health of your business. The more irreplaceable an owner is, the longer it takes to preserve value and put in place a succession plan. Johnsons’ advice is to plan early.
Inheritance tax is an increasing concern to all business and property owners and not just high net worth individuals. There are a range of tax strategies which can be put in place. Johnsons can help you develop robust and tax efficient succession plans and bring fresh insight to possible options.
Options include, for example, if selling your business Entrepreneurs Relief should be considered as it can result in a reduced capital gains tax rate of 10%, compared to inheritance tax of 40%. Other ways to exit or leave a business each have their implications and opportunities. These include:
- Selling it to existing staff
- Handing it over to family members
- Selling to a third party
- Closing the business down
- Transferring ownership into a trust
The team at Johnsons will work with you to establish your optimum strategy.
Require more information?
If you would like more information or would like to speak to us direct then call us on 020 8567 3451. Or if you would prefer, ask us a question online.