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Tax Breaks for Directors - Part 2 Director shareholders - 19. Restructuring shares - 19.5. Shares to other family members - 19.5.3. Other taxes
19.5.3. Other taxesThe transfer of shares by an existing shareholder could qualify as a potentially exempt transfer (PET) for IHT purposes. No IHT liability would therefore arise provided the transferor shareholder survives for seven years. This is subject to transfer of value provisions.Tax breakThe gift of shares qualifies as a PET for IHT purposes. So IHT is avoided if you survive the gift by seven years.Click here -
Tax Breaks for Directors - Part 2 Director shareholders - 20. Inheritance tax breaks - 20.1. Introduction
20.1. IntroductionIt’s important to provide for the continuity of your business and its management in the event of your death, disability or predetermined retirement plans. The current tax regime is probably as favourable as it is ever going to be in terms of providing for succession in the family or owner-managed company. For example, all shareholdings in unquoted trading companies are completely inheritance tax (IHT) free.Click here -
Tax Breaks for Directors - Part 2 Director shareholders - 21. Selling your company - 21.5. The inheritance tax angle
21.5. The inheritance tax angleBusiness property relief (BPR) is available on shares in unquoted companies if certain conditions are met, meaning 100% of the market value of those shares escapes inheritance tax (IHT). Any business must be owned for two years before the BPR exemption applies. If you sell your shares and receive others in another company in exchange in a takeover deal, the new shares can be treated as replacements for the old and therefore the two-year ownership condition isn’t broken. Broadly,...Click here -
Slash Your Tax for Small Businesses - 3. The longer term - succession planning and selling the business - 3.1. Core questions - 3.1.6. What will happen if I die while I’m still running the business?
3.1.6. What will happen if I die while I’m still running the business?Your beneficiaries will acquire your business as if they had bought it from you at its value at your date of death but there will be no CGT even if this is greater than the cost of the business to you.Click here -
Slash Your Tax for Small Businesses - 3. The longer term - succession planning and selling the business - 3.5. Inheritance tax - 3.5.1. What happens if I gift all or part of my business to family members?
3.5.1. What happens if I gift all or part of my business to family members?IHT applies to the estate of a deceased person, as well as to certain gifts individuals make during their lifetimes.Gifts from one individual to another are potentially exempt transfers. This means if the donor (the person who made the gift) dies within seven years of the gift it will become chargeable to IHT and a charge of 40% of the value of the gift might then arise. The tax payable is reduced on a sliding scale where the gift...Click here
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