Understanding the tax planning opportunities and avoiding tax traps and pitfalls is at the core of all our planning and reconstruction work. We offer integrated tax advice in respect to the acquisition and disposal of businesses but in addition we offer a further range of specialist tax advice.
Inheritance Tax Planning
There is a common misconception that trading companies qualify for 100% inheritance tax relief. In most cases, a company will also hold assets or surplus cash which are not used for trade purposes resulting in a partial disallowance, or worse still, a total loss of relief where a company becomes wholly or mainly investment.
The legislation has been broadly unchanged for many decades and provides significant opportunities for tax planning to optimise the availability of business property relief. Often it is possible to effectively ‘hide’ significant investments within a trading company structure without any loss of relief.
Occasionally a review will require a more drastic approach such as the demerger of certain investment activities but again this can be done in a tax efficient manner. In too many cases a review of a company or group structure has not been undertaken in respect of inheritance tax reliefs and useful planning opportunities are overlooked until it is too late!