Owners of trading businesses potentially enjoy significant capital tax breaks. Business property relief is a generous relief from IHT, but investment activity, business assets not used for business purposes and debt arrangements can jeopardise the relief. Gift relief from CGT may be available but needs to be claimed and is subject to claw-back. Although the current tax rules are very favourable, they may change in future, so lifetime giving should still be considered.
In the second article in a series considering the lifecycle of the business, Helena Luckhurst and Katie Mitchell examine the succession planning issues that entrepreneurs should consider at both an early stage and throughout the lifecycle of their business.
Read the full article here.
Click here if you would like to read the first article in this series – ‘Lifecycle of a business: setting up’.