Starting a new business? Now’s the time to draft a tax efficient Will and protect both you and your business with a power of attorney.
For those setting up new businesses, it’s all too easy to direct all your energy into the business, neglecting what our private client department would regard as essential personal planning - which should go hand in hand with any new business venture.
With the creation of a new business comes the opportunity for some careful inheritance tax planning. Your new business venture may well open the door to a valuable (potentially 100%) relief from inheritance tax known as Business Property Relief. This allows business owners to pass their business assets on death free of inheritance tax. It therefore makes sense to review your Will at the start of any new business venture to ensure that this valuable relief is not wasted if available.
Likewise, business owners are advised to consider what would happen to their business if they suffered an accident or illness that meant they became either temporarily or permanently unable to run the business.
The creation of a Lasting Power of Attorney, tailored for business owners, enables them to appoint attorneys of their choosing, who could step in immediately to ensure the business continued to operate as it should.
Without a power of attorney, your business is likely to struggle in the months it would take to pursue a costly application through the Court of Protection whilst a deputy is appointed to manage your affairs. Furthermore, if in the absence of a suitable power of attorney, you would have no say over who the court chose to appoint as your deputy.
Reviewing your Will, tax position and making provision for the unexpected is a relatively straightforward process, so if the above is of interest, please don’t hesitate to contact our private client team.