Protecting Your Business From Inheritance Tax

If you run a business that you plan on passing to your family when you die, you should consider how best to do this whilst minimising the amount of Inheritance Tax (IHT) that they will pay. Protecting your business from IHT could mean the difference between beneficiaries having to sell the company to pay an IHT bill or being able to fulfil your wishes and keep the business in the family.

Our experts in business protection can help you put strategies in place to achieve your future plans for the company, whether that is selling your business on retirement or planning for growth with IHT relief.

Inheritance Tax is charged at a rate of 40%, but if you own a business that you are involved in, you may be able to claim either 50% or 100% relief on its value. You may qualify for relief if you meet the following conditions:

  • You have owned the business, or had an interest in the business, for at least two years
  • The business is unquoted and is either wholly or mainly a trading business
  • There is not an automatic contract for sale on the death of a shareholder contained in the articles of the business

How JMW Can Help

Our knowledgeable team will explore your options for minimising IHT on your business. Not all businesses qualify and those that are partly trading might be denied relief on the whole value. However, small changes to the structure of the business could mean securing relief on all or part of the assets. Similarly, businesses that run a buy-to-let portfolio do not qualify.

We will look at how best to structure your business to secure Inheritance Tax relief and meet your future growth plans. For more information about business property relief, click here.

Talk to Us

To speak to a solicitor about business protection and Inheritance Tax relief for your company, get in touch with us today. Simply call us on 0345 872 6666 or fill in our online enquiry form to request a callback.

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