/ Case Study
/ Taxi Firm, Devon
Future Planning and Business Tax Reliefs Help Local Family Business
Running a business can take all of your time, money and effort and you don’t want to see that all go to waste if something happens to you or one of your business partners.
We were approached by a Devon based business who need to know what to do with their company to protect it from fragmenting in the event of one of the partner’s passing.
The firm has a slightly complicated and informal set up. It was started by a husband and wife and more recently been joined by two of their children who are now adults and very involved in the business, from purchasing decisions to servicing contracts.
The husband is considering retiring and his wife wanted to ensure that everything would be okay after he moved on from the business. They wanted to ensure that in the event of one or both of them passing away that the relevant monies were fairly distributed but that the company didn’t become fragmented or the money/control pass into the hands of others who weren’t directly involved in the business. They were worried about what would happen to their children’s shares, would their spouses take a cut?
The business is profitable and provides an income for those involved but stability was important. It wouldn’t take much, a few arguments or poor decisions to make it unprofitable, so stability was a key element of any any future planning.
So we set up a Will and Trust arrangements which will protect them from future changes but not inhibit the day to day running of the business.
It is very important to get your will right. If your Will is not written correctly, you are likely not to benefit from business tax reliefs. We make sure that the correct wording is in place to ensure that if your business can get tax relief on death, it does so.