Structuring Your Business Legacy
Navigate the complexities of Business Property Relief with confidence. Our approach is designed to support planning for the future of your business, helping you consider how it may be retained within the family.
Comprehensive Protection
Our Business Legacy Planis intended to make use of both BPR allowances where available,supporting the long-term planning of wealth for future generations.
Efficient Wealth Transfer
Support the efficient transfer of wealth to the next generation, with structures designed to maintain business continuity while making use of tax efficiency.
Upcoming Challenges
Understanding the New BPR Landscape
From April 2026, changes to Business Property Relief (BPR) will significantly impact how businesses are passed down to the next generation. With the introduction of a £2.5m cap for 100% relief, families face the risk of substantial Inheritance Tax (IHT) bills, potentially up to 40% on second death. This could force the sale of business assets to cover tax liabilities, jeopardizing the legacy you’ve worked hard to build.
Standard mirror wills may no longer suffice, as they often result in the loss of one or both BPR allowances. This could expose up to £5m to reduced relief, translating into a potentially significant IHT exposure, depending on structure and circumstances. It’s crucial to understand these changes and prepare accordingly to protect your family’s financial future.
We work alongside your legal and financial advisers to design and implement an appropriate structure.
Our Planning Approach
Introducing the Business Legacy Plan
SA Ledgers presents the Business Legacy Plan,a structured approach to planning around your business and personal wealth. By seeking to make use of both BPR allowances where available across a married couple, our plan is designed to support the transfer of the business within the family, even if shares are encashed. Through structured wills, trust planning, and tailored share structures, we aim to reduce potential IHT exposure, depending on circumstances. Our strategy can, if structured appropriately, allow spouses to retain income and flexibility, while children inherit efficiently,while seeking to minimise unnecessary tax leakage.Plan for your business’s future and maintain appropriate control with our guidance.
Understanding the Business Legacy Plan
Step 1
Structured Wills
Our process begins with the creation of carefully structured wills that aim to utilise both Business Property Relief (BPR) allowances where available across a married couple,supporting tax-efficient planning.
Step 2
Trust Planning
We implement trust planning to hold business interests outside of future estates,supporting the preservation of relief and facilitating the transfer of the business within the family.
Step 3
Tailored Share Structures
By designing tailored share structures, such as non-voting shares, we maintain control and flexibility, allowing the spouse to retain income while facilitating efficient inheritance for the children.
Key Benefits of the Business Legacy Plan
Potential IHT Savings
Our plan aims to reduce Inheritance Tax (IHT) liabilities, with the aim of preserving more wealth for your family.
Business Continuity
We look to reduce the risk of a forced sale of the business to cover tax expenses.
Family Protection
These structures may offer protection against divorce, creditors, and poor decisions, providing peace of mind and stability for future generations.
Mitigating Business Risks
Trading Continuity Strategy
One of the critical risks we address is the potential loss of Business Property Relief (BPR) if the business ceases trading.
by maintaining the business’s trading status. At SA Ledgers, we are committed to providing experienced accounting and bookkeeping services that support your legacy planning needs.
Who Can Benefit from Our Business Legacy Plan?
Is the Business Legacy Plan Right for You?
Our Business Legacy Plan is tailored for business owners who are keen on preserving their wealth for future generations. If you own shares in a trading business valued at £2m or more, and are concerned about the implications of Inheritance Tax (IHT), this plan is designed for you. It is particularly beneficial for those who wish to pass on their business to their children efficiently, with consideration given to potential tax liabilities. Our plan is intended to make use of both BPR allowances where applicable, safeguarding your legacy and maintaining business continuity within the family.