Inheritance Tax Opportunities
From lifetime gifts of cash, property or even shares to family members, to creating trusts for protection purposes, our expert lawyers can advise on the best structure to protect against inheritance tax as well as advise on protective measures for vulnerable beneficiaries who may find it difficult to manage money, particularly if significant sums are involved. Â Succession planning is included in our Corporate Will service which looks at protecting your business assets and keeping you in control.
Protecting shares/assets for the next generation
Putting a Corporate Will in place is the best way to protect your business for the next generation.
Ensuring there's a clear strategy about what happens to your shares, and who runs the business should anything happen to you or someone in your senior management team, makes perfect business sense.
Our Corporate Will Service reviews your existing arrangements to see what protection you have in place and then reports back with any recommendations. We can do this for all owners of a business, although individual wishes will remain confidential. The Corporate Will ensures all owners have their affairs in order and there are no nasty surprises for the others in the event that someone dies unexpectedly, gets divorced or suffers an accident.
We look at:
- Existing Articles of Association and any Shareholders' Agreements
- Powers of attorney in relation to business and personal financial decision making in the event of incapacity
- General succession planning for the business
- Inheritance tax planning - crucial for business clients contemplating a sale of the business in the short to mediumÂ term but also important as part of general weatlh planning
- Insurance options to provide cash on the death of an owner to enable a buy back of shares
- Protection in respect of divorce or separation of an owner
- Making/updating Wills
- Review of property ownership
- Trusts & Pensions
Converting Directors loans into shares to qualify for IHT relief
Your business may qualify for Business Property Relief, a potentially valuable tax relief which can mean that all or part of the value of your business assets are exempt from Inheritance Tax. If you have a credit balance on your Directors' Loan account, this would not attract relief so there are other options to consider. Converting the loan into shares in the company, which after two years would qualify for Business Property Relief. If you personally own your business premises, you could consider transferring the property into the Company and enhance Business Property Relief from 50% to 100%.
We can advise you on the best course of action and work with your independent financial advisor and accountant to implement the strategies.