Prepare your business with Payne Hicks Beach The General Election : Essential preparation for family businesses
“
As a law firm specialising in family businesses, we work closely with our clients to navigate national and global events that can affect businesses. With a UK general election approaching, family businesses are likely to experience a period of uncertainty as political parties announce their policy agendas. ' How should we prepare for the election ?' is a question often asked, and we consider some key areas that are likely to affect family businesses below. "
Howard Taylor Partner
htaylor @ phb.co.uk
Policies that could affect your business
01
03
02
For businesses that occupy non-domestic property, business rates can represent a significant cost. Labour plans to replace business rates with an entirely new system, while the Conservatives intend to reduce business rates following a “ fundamental review ” of the existing system. Business rates
Capital gains tax (CGT) A CGT liability for business owners can arise when a business is sold. While Labour has ruled out increasing the rate of CGT, it could make changes to the exemptions and reliefs that apply to it, including Business Asset Disposal Relief.
The Spring Budget included proposals for a new residence-based scheme for IHT. The Government has said these changes, especially important for family business owners considering succession planning, will, subject to consultation, take effect no earlier than 6 April 2025. Inheritance tax ( IHT )
Prepare now, and ask yourself :
Is the business’ financial health robust enough to deal with election uncertainty? Would now be a good time to sell the business or seek an injection of capital? Do the shareholders have a common long-term goal, or would now be a good time for some or all of them to exit the business? Does your succession plan need revisiting? Now is a good time to consider whether it remains suitable in light of potential changes to the tax system. Is your business planning a major transaction or change, such as a sale or the transfer of control to a younger family member? Should it be implemented prior to any changes to the tax system?
PAYNE HICKS BEACH
Visit www.phb.co.uk for more information. Contact Howard Taylor (htaylor@phb.co.uk) for assistance
11
Made with FlippingBook - professional solution for displaying marketing and sales documents online