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.