Podcast #136: Succession planning for business owners under the new IHT rules, with Bishop Fleming's Peter Ball

IFA Talk

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12d ago 19:52

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In this week's episode of IFA Talk, we dive into the world of taxes, following changes to IHT rules. Recent changes and potential further tightening of the IHT rules mean that some families could face a shockingly high combined tax burden on a business owner’s estate. When you factor in Corporation Tax, Dividend Tax and IHT, in some cases the overall tax exposure could reach as much as 88%.

Joining us to discuss this is Peter Ball, Tax Partner at Bishop Fleming. Peter helps us get our heads around where this tax trap is coming from, and how it can be mitigated with the right planning. Peter shares his insights on how you can help your business clients and their families plan for liquidity in a business, the practicalities surrounding valuations, and whether trusts might once again play a larger role in succession strategies.

Peter explains how the 88% figure is calculated and under what circumstances it could apply, how business owners can ensure there’s enough liquidity in the company to meet potential IHT liabilities, the practical issues that advisers and their clients need to consider when it comes to valuing the business, and whether he sees trusts playing a bigger role in succession planning for family businesses going forward.

Be sure to check out this episode and all other episodes of IFA Talk on Spotify, Apple Podcasts, and Amazon!

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