Protecting Business Assets from Inheritance Tax

For business owners, inheritance tax (IHT) can substantially impact the value of a business transferred to heirs. Since the 2010s, eligible business assets may qualify for up to 100% Business Relief, enabling tax-free transfers if specific requirements are met. This relief applies to actively trading businesses but excludes certain investment- focused enterprises, making precise planning essential.

With careful planning, you can protect your business from unnecessary tax burdens while preserving its value for your heirs.

What is Business Relief?

100% Business Relief

Most trading businesses can qualify for Business Relief
at 100%, meaning there will be no IHT payable on the value of the business when it is passed on to heirs.

50% Business Relief

If you own a property that your business operates from but
it’s held as a separate entity, it qualifies for 50% Business Relief.

Non-Qualifying Assets

Investment businesses, such as buy-to-let property
portfolios or share portfolios, do not qualify for Business Relief and may be subject to both Capital Gains Tax and IHT.

Business Relief benefits

Protect your business from inheritance tax (IHT) and ensure a smooth transition for your heirs. With the potential for 100% Business Relief, your actively trading business could pass on free of IHT, securing its future for the next generation. However, careful planning is essential, as not all businesses qualify and mistakes can be costly. learn more about how you can reduce IHT on your business and keep it in the family for generations to come. Reach out to us today for expert advice and tailored inheritance tax planning.

The Risks of Not Planning for Business Succession

Without proper planning, your business assets may be exposed to various risks, including:

Loss of Business Relief

If the business is sold and the proceeds are passed as cash, Business Relief is lost, and the cash may be subject to IHT in the estate of the surviving spouse or partner.

Exposure to Hostile Creditors

Assets could end up in the hands of hostile creditors or even the future spouse or children of a surviving spouse.

Impact of Long-Term Care

Business assets could be at risk if the surviving spouse needs long-term care, as local authorities may consider them for care funding assessments.

How We Can Help

At the Inheritance Planning Company, we specialise in protecting business assets from inheritance tax and ensuring that they are passed on in a tax-efficient way. Our team can help you set up structures that allow your heirs to inherit the business while protecting the estate from threats.

Business Wills and Trusts

We can arrange for shares in the business to be passed on to your heirs while ensuring your surviving spouse or partner has full access to the assets during their lifetime. This approach protects the estate from IHT while overcoming potential legal and financial threats.

Specialist Advice

Not all businesses qualify for Business Relief. We provide expert advice tailored to your specific situation to ensure you take advantage of all available tax reliefs.

Contact Us for a free consultation

Protect your business and your family’s future with professional inheritance tax planning. Contact us today for a no-obligation consultation to discuss your business assets.

Concerned about inheritance tax on your business? Contact us to learn how you can protect your business assets from unnecessary tax.

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Protecting Business Assets from Inheritance Tax