If you own a business, estate planning takes on an additional layer of complexity. Without proper planning, your death could trigger the forced sale of the business, leaving your family without both you and the income the business provides.
Business Relief (formerly Business Property Relief) can reduce the IHT liability on qualifying business assets by up to 100%. In 2026, this remains one of the most valuable reliefs available, potentially saving hundreds of thousands of pounds in tax.
However, not all business assets qualify for Business Relief. Trading businesses typically qualify for 100% relief, while investment companies and businesses dealing in property or securities may not qualify at all.
Succession planning is equally important. Your Will should include clear provisions for who takes over the business, how it should be managed, and what happens to your share. A shareholders' agreement or partnership agreement should align with your Will.
Key-person insurance can provide vital funds to keep the business running while a successor is found. Cross-option agreements between business partners can ensure a smooth transition of ownership.
We also recommend considering a Business LPA — a Lasting Power of Attorney that specifically covers your business affairs, allowing your chosen attorney to manage the business if you lose capacity.
At Castle Family Legal, we understand the unique challenges faced by business owners. Contact us for specialist advice on protecting both your business and your family.
