top of page
Search
  • Writer's pictureNaresh Sethi

IT DOES NOT PAY TO RETIRE IF IN BUSINESS

It is not financially wise to retire - or rather you can save a lot of inheritance tax if you do not retire.

In a drive to encourage business succession the government introduced "BUSINESS RELIEF FOR INHERITANCE TAX" many years ago. [https://www.gov.uk/inheritance-tax ]

The ownership of a business or shares in a business is included in the estate for inheritance tax ourposes BUT you can get BUSINESS RELIEF of either 50% or 100% on some of an estate's business assets which can be passed on:

- while the owner is still alive ( https://www.gov.uk/business-relief-inheritance-tax/give-away-business-property-or-assts )

- as part of a will

You can get 100% Business Relief on a business or interest in a business &/or shares in an unlisted company;

if certian conditions are not met one can only get 50% releif.

You can only get Business relief if the deceased owned the business or asset for at least 2 years before they died.

The executor of the the will or admisnistrator of the estate can claim using forms IHT400 and IHT413.

17 views0 comments

Recent Posts

See All

LETTER TO BANK OF ENGLAND ABOUT INTEREST RATES

To: The Monetary Policy Committee Bank of England Threadneedle Street, London EC2R 8AH THE PITFALLS OF HIGHER INTERST RATES: Higher interest rates can be useful for slowing or reducing inflation in th

Comments


bottom of page