This information is restricted to readers in England and Wales due to the difference in legislation in Scotland and Northern Ireland.

As a successful business owner or high-net-worth individual, you’ve worked hard to build wealth, security, and a future for your family. But without proper planning, Inheritance Tax (IHT) could strip away a large portion of what you intend to pass on.

Currently, the standard IHT rate is 40% on anything above the £325,000 threshold — and your business assets are likely to push your estate well over that line.

The Real Cost of Inheritance Tax

Let’s say your total estate is valued at £2 million. Without effective IHT planning:

• The first £325,000 is tax-free
• The remaining £1.675 million could face a 40% tax
• That’s £670,000 potentially going to HMRC instead of your family

This is not just about money — it’s about the future of your loved ones and the legacy you’ve built.

Why Business Owners Are Especially at Risk

Business assets, shares, properties, and even retained profits can count towards your taxable estate. Many business owners assume their wealth is protected or will simply transfer to their heirs — but the reality is more complex.

Common issues include:

• Lack of IHT-efficient structures
• Unplanned share ownership after death
• Family disputes over business succession
• Forced sale of assets to cover the tax bill

This can place pressure on your business, your successors, and your loved ones — exactly when stability is most needed.

How to Protect Your Legacy from IHT

You can take proactive steps to reduce the risk and ensure your intentions are fulfilled. Key strategies include:

1. Use Business Relief (BR) Wisely

Some business assets can qualify for up to 100% relief from IHT — but only if your business qualifies and your arrangements are watertight. Poorly structured plans can result in HMRC challenging the claim.

2. Shareholder Protection with a Trust

By placing a life policy into trust, the payout falls outside your estate — giving your successors funds to buy your shares without inflating your IHT bill.

3. Gifting & Family Trusts

Start transferring wealth early via gifting strategies or discretionary trusts, particularly if your children or grandchildren are already involved in the business.

4. Create a Succession Plan Now

Don't wait until later in life. A written succession and protection plan makes your wishes clear and reduces legal complications.

Protect More Than Just Your Wealth — Protect Your Legacy

Inheritance Tax planning isn’t just about saving money. It’s about:
✅ Keeping your business in the right hands
✅ Preserving your family’s financial security
✅ Fulfilling your long-term vision for your legacy

Take Control Before the Taxman Does

If your estate exceeds the IHT threshold, doing nothing could cost your family hundreds of thousands — or even millions. With smart planning, you can dramatically reduce or eliminate that risk.

Talk to us today about inheritance tax and shareholder protection strategies that secure your wealth, your wishes, and your legacy.