KEEPING IT IN THE FAMILY MEANS TAKING CARE OF BUSINESS

Worcestershire’s business owners who are looking to pass their hard earned legacy to family members are risking falling foul of the taxman.

The warning comes from respected county tax expert Anita Stewart who says there are numerous tax pitfalls that businesses could encounter unless they take steps to protect themselves.

There are countless tax implications for people planning the succession of their business. But Ms Stewart, who looks after the tax interests of many Worcestershire firms, is attempting to highlight the perfectly legal and legitimate ways in which the tax burden can be reduced.

Ms Stewart, partner at Bewdley firm DHJH Chartered Accountants, said: “Family businesses here in Worcestershire have been passed down from generation to generation but for many, the tax rules around succession can make it seem a daunting process.

“The sweeping changes in recent years to our tax system has made that process even more overwhelming for some. However, those who have been caught in a tangled web of paperwork must see that to tidy up their affairs and ensure the business is ready to be passed on, they must seek advice.

“There are several strategies which can be implemented to minimise tax on the sale of a business, but it is clear many business owners are overlooking them.

“It is of the utmost importance that the correct structure is in place for the business to be attractive to buyers whilst reducing any capital gains tax payable on the sale.   

“We are seeing more and more people turn to us for advice on the matter, and exploring all the possibilities, either within the family or to an external purchaser.

“There are lots of things to bear in mind when the control of a business is being transferred - everything from entrepreneurs relief through to inheritance tax. But there’s no doubt that professional advice can make the transition much smoother.”  

Businesses looking for advice on succession planning can contact Ms Stewart on 01299 403503 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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