10 news/legal expert


Planning ahead – it’s vital to consider an exit strategy


This month my dad turns 70 and he is still working with no sign of stopping, writes Glanvilles partner Claudia Roberts. This is partly because he is a workaholic, partly because he is a control freak and partly because he enjoys what he does


He is a family business owner and like so many is tied up in his business long beyond retirement. He is lucky because he can – touch wood. He is still fit and healthy – mentally and physically. The main reason for the continued involvement, however, is that he never planned, considered or thought about retirement.


When working on our own businesses we plough everything into them – time, energy and finance to name just a few – but what is it all for?


At some point most of us want to slow down and be able to enjoy the fruits of our hard labour. Most of us would also like our business to continue and flourish for the benefit of future generations.


0800 169 3808 Offices across the South Coast


Legal services for businesses, professionals and high net worth individuals


• Commercial • Commercial Litigation • Commercial Property • Corporate


• Employment • High net worth Divorce & Separation • Wealth Protection and Tax Planning


Therefore, it is vital to think about an “exit strategy“ and to think about it early. There are many issues to consider, for instance:


• Who should succeed us and how and when to hand over the reins;


• Whether to sell to a third party or to try to keep the business in the family for future generations; or


• How to unlock capital or income for retirement from the business?


Every route has different and considerable tax and financial implications. Also the legal structure of your business may make one route easier than another.


However, at five to midnight, trying to get it right may be very costly (for instance, through the loss of tax reliefs) and may even stop or make it difficult for you to do what you may have wished to have done.


Every route has different and considerable tax and financial implications


Even worse, lack of planning could expose the business to 40% inheritance tax on death and probably force its sale or even closure.


To make sure you can retire when you wish to and be sure that your business survives beyond your lifetime, it’s well worth seeking expert advice.


R3 calls on government to scrap legal reforms


A group of Hampshire and Dorset insolvency experts have warned that government legal reforms could cost creditors over £160 million a year from next April – with rogue directors the big beneficiaries.


Legal services for individuals and families


• Accidents & Injuries • Divorce & Separation • Residential Property • Wills and LPAs


• Trusts and Estate Management • Wealth Protection and Tax Planning • Court of Protection Work


West Wing, Cams Hall, Fareham, Hampshire PO16 8AB Tel. (01329) 282841


Langstone Gate, Solent Road, Havant, Hampshire PO9 1TR Tel. (023) 9249 2300


The Courtyard, St. Cross Business Park, Newport IW PO30 5BF Tel. (01983) 527878


www.glanvilles.co.uk www.businessmag.co.uk


Fortis House, Westridge Business Park, Ryde IW PO33 1QT Tel. (01983) 566980


The southern committee of R3, the insolvency trade body which brings together experts from companies such as Quantuma, Coffin Mew and Baker Tilly, is backing a call for the Government to scrap the planned change.


Nationally R3 has joined forces with a number of high-level business groups, including the Institute of Credit Management, the British Property Federation and the UK’s key accountancy bodies, to send a letter to the prime minister and justice secretary asking for the Government to reconsider its reform.


From April 2015, insolvency litigation will no longer be exempt from the crackdown on ’no-win, no-fee’ legal funding introduced


by the 2012 Legal Aid, Sentencing and Punishment of Offenders Act (the ’Jackson’ reforms). This type of funding is often the only way creditors can afford to pay for court cases to retrieve money from rogue directors that have wrongly taken money out of a failed business.


Andrew Watling, chairman of the Southern Committee of R3 and a director at Quantuma in Southampton, said: “These changes are anti-business, will increase tax avoidance and evasion, and will benefit directors of insolvent companies who have committed fraud or behaved recklessly.


“Many insolvencies affect creditors who do not have the resources to provide funding to pursue cases where they have lost money. From April 2015 many of these cases will not be affordable to pursue, leaving taxpayers and small businesses out of pocket and rogue directors walking away with more than £160m a year.“


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – DECEMBER 14/JANUARY 15


Roberts is partner and chartered tax adviser at Glanvilles, and an expert in wills, trusts and probate.


Details: Claudia Roberts 01983-538026 claudia.roberts@glanvilles.co.uk www.glanvilles.co.uk


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48