Owner Managed Businesses

Many categories of entrepreneurial owner managed businesses will be family businesses where there is a possibility that family members (in particular children, nephews and nieces) will take over the business in the future. This gives rise to many tax issues that need to be considered in order to ensure that the business is passed on in a tax efficient manner.

Business Property Relief (BPR) is a tax relief that means gifts of business assets or shares in trading companies can be passed on as gifts or upon death for no inheritance tax charge. it is important to ensure that the qualifying conditions are met so that this valuable relief can be obtained and maximised.

We can provide consultancy services, and planning reviews with family businesses to ensure that your business meets the requirements to take advantage of this valuable relief.

Family businesses also give rise to issues around when family members should be issued (or alloted) shares in the family company, and the tax implications of doing so for both the acquirer of the shares as well as other family members.

In many cases a well run family business will have a shareholders' agreement so that there is guidance on what is to be done in the event of a future dispute. We have many years experience in preparing, reviewing and commenting on shareholders' agreements and would be delighted to work with you to ensure that your business is protected by this important governing document.

Family businesses and their owners will often require assistance and advice in respect of their personal tax and personal wealth. We have specalist knowledge in personal tax issues, and can advise family businesses on a range of personal tax and wealth management services.

We can provide guidance on different tax arrangements in order to protect and enhance wealth, including the use of trusts and ensuring that you have a diversified investment portfolio. Through our Designated Professional Body (DPB) authorisation by being a member firm of the Institute of Chartered Accountants in England & Wales (ICAEW), it means that we can advise generally on investment matters that arise from our accounting and taxation services provided to our clients. For more information on the scope of the services we can provide please see the "Investment Advice" section of our Terms of Business.

We have a dedicated team within MG Group who specialise in personal tax and wealth management for our clients. We would be delighted to act for you and to discuss some options and recommendations with you.

A number of our entrepreneurial owner managed businesses will require a financial statement audit to be carried out. There are a number of reasons why an audit may be requested by the Directors of the company. Some of the reasons why we provide financial statement audits to our Entreprenuerial clients include the following:

• family businesses where not all the shareholders are involved in the management of the company, and would like an independent opinion on the financial statements
• businesses which have loans/mortgages from financial institutions, which have been granted on the basis that the business has a financial statement audit each accounting period.
• Business owners consider it "best practice" to have audited accounts, and especially to provide greater assurances on the numbers to potential acquirers of the business
• the business may be a subsidiary or associated undertaking of a larger entity that requires a financial statement audit
• the business may be operating in a regulated market where a financial statement audit is required.

In addition to the above, for many entpreneurial owner managed businesses, we will often be asked to carry out "due diligence" on businesses that our clients are interested in acquiring. there are many areas that we can look into, and we would be delighted to recommend the types of issues and data that would be useful in any particular situation. Our high professional and comprehensive review of a business is an important part of the decision making process when assessing whether to purchase a business.