Since the introduction of Business Property Relief in the 1976 Finance Act, hundreds of thousands of family-run businesses have been passed on to descendants free of inheritance tax.
Now simply called Business Relief, it allows qualifying business assets to be passed to beneficiaries with either 50% or 100% relief from inheritance tax.
Qualifying assets include all trading businesses, commercial forestry & farming and companies quoted on AiM.
Tax Efficient Legacy Planning
Alongside Business Relief, our services utilise other aspects of primary legislation that can help to defer or reduce capital gains tax liabilities while maintaining inheritance tax efficiency.
The careful design of our services allows clients to benefit, not just from the tax efficiency they seek, but also enjoy the growth and income potential of the underlying investments.
This means that you can offer clients flexibility and choice whilst they keep control of their capital.
Business Asset Rollover Relief (BARR)
When selling a trading business, if the proceeds are invested in Business Relief qualifying assets within three years then capital gains tax can be deferred.
When selling a trading business, if the proceeds are invested in Business Relief qualifying assets within three years then full inheritance tax relief can be maintained with no two-year qualifying period.
Entrepreneurs’ Relief is available to sole traders or partners selling or giving away a part or the whole of their business. It is available to company directors and employees owning 5% or more shareholding.
This relief means capital gains tax reduces to 10% on all gains on qualifying assets.