Planning your family business share transfer is probably one of the most important tasks in your business life.
It is estimated that 100,000 family firms transfer from one generation to the next every year.
Many of those transfers take place without enough thought for the tax implications
The structure of your business may well have significant consequences for how much tax the next generation will have to pay. Holding onto shares until the time comes to hand over the business will probably be leave you with regrets.
It is essential to get professional advice to understand what effect, how both inheritance tax and capital gains tax will have when the next generation takes over.
You should plan and seek advice years ahead of the proposed succession date. Many experts recommend up to ten years but you should certainly take action at least three years before. You will find this will realise significant rewards.
Please ask if you require advice on this and we will put you in touch with experts on succession planning and tax mitigation.