Inheritance Tax Threat to Family Business Owners

Current Inheritance Tax rules give a 100% relief for “Business Property". What this means is that shares in unquoted trading companies such as yours can, at the moment, be passed on to the next generation during lifetime or on death with no Inheritance Tax being charged on their value.

Potential Inheritance Tax Rule Change. Recent reports in the mainstream media suggest that a future Labour government is considering restricting the amount of Business Relief available. The suggestion is that Business Relief will only be available on the first ￡500,000 in value of business assets. Any value over that amount could face an Inheritance Tax charge at 40%.

Here's how you can benefit from the current 100% relief:

• We can help you remove the value of your unquoted trading company shares from your estate, while you retain complete control and voting rights.
• We can ensure this planning doesn't affect your current income stream.

By taking action now, you can:

• Protect a significant portion of your estate from a potential 40% Inheritance Tax.
• Be prepared for the highly likely, event that a Labour government is elected in July and presses ahead with these plans.

If this is something you would like to discuss, you can call David Gillies – Head of Tax at Friend Partnership – on 0121 633 2007 or e-mail him at [email protected].

Read more on Using Business Relief To Reduce Inheritance Tax here.

Friend Partnership?is a forward-thinking firm of Chartered Accountants, Business Advisers, Corporate Finance and Tax Specialists, based In The UK