Inheritance Tax Planning for Family Businesses
Although a recent report called for the removal of Business Property Relief for family businesses, the government has refused to alter the way in which Inheritance tax liability is calculated.
Currently, those benefiting from probate by way of a stake in the family business are exempt from paying inheritance tax under BPR rules.
The UK’s Department of Business, Innovation and Skills has argued that by removing BPR, business owners will therefore be encouraged to restructure the business and bring in more revenue for the government.
The government disagrees however, believing that BPR is vital in supporting the sustainability of small, family-run businesses and that it must remain.
Are you the head of a family business? Have you thought about inheritance tax planning and do you agree with the government’s decision?