PLANNING TAX-EFFICIENT BUSINESS SUCCESSION
by Wendy Anderson Partner, PM+M
Succession planning can be tricky for family businesses and decisions can sometimes be put off as a result.
Given the pension changes in the recent Budget, abolishing the lifetime allowance, and a potential future Labour government on the horizon, changes to inheritance tax are becoming more likely and are only going to go one way.
Now is the time to consider business succession.
The tax rules are currently such that retaining your shares and passing them on death is very tax efficient.
However, that may change in future, and it can also be a block to genuine business succession.
It pays to consider what’s best for your family and business early and build the best plan for you.
Ignoring it because it’s too difficult is rarely the best option.
If making outright gifts of shares to family is a step too far just now, maybe consider a family trust to allow you to give away the value, but where you can still retain control of the shares in the role of trustee.
This can be a good way of allowing non-working family members to share in some of the benefit from the family company without them having a direct shareholding and allowing the tax-efficient spreading of income across the family.
Don’t bury your head in the sand – build your succession plan and use the tax reliefs now before it’s too late.
HELPING YOU ACHIEVE MORE
Supporting you to make the best decisions for you, your business and family through expert business succession, tax, trust and estate planning, financial planning and probate advice.
SPEAK TO US TODAY: 01254 679131
enquiries@pmm.co.uk www.pmm.co.uk
USING AN LPA TO KEEP CONTROL by Fatima Musa
Head of Private Client , Kinetic Law
What happens if you can no longer make the decisions needed to protect what you have built during your lifetime?
If you were in an accident, unable to move, unable to talk, or if you developed a mind debilitating illness, how would your wishes be carried out?
Many people have a Will, but a Will is only effective on death.
What happens if you are still alive but unable to make decisions for yourself? The answer, a Lasting Power of Attorney, an LPA.
An LPA is a legally binding document that you prepare during your lifetime appointing individuals - Attorneys - to act on your behalf if you become incapacitated.
This allows your wishes to be carried out, even if you can no longer express them.
There are two types of LPAs:
1. Financial Decisions, which allow your Attorneys to deal with all financial matters on your behalf.
2. Health and Care, which allow your Attorneys to make medical and welfare decisions on your behalf only if you become mentally incapacitated.
Everyone over the age of 18 years should prepare an LPA. These documents allow you to keep control of very personal decisions when you are most vulnerable.
An LPA protects you during your lifetime, a Will protects you on death. Don’t leave yourself open to living through decisions others, who you may not know or trust, make on your behalf.
The team at Kinetic Law are experts in the field of LPAs and should you require further advice, then please contact us to discuss this further.
Telephone: 0800 445 1000 Email:
fmusa@kineticlaw.co.uk LANCASHIREBUSINES SV
IEW.CO.UK
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WILLS AND PROBATE
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