April 14, 2018
For now, you may feel confident that, as a business owner, your presence and your ability to make decisions will be the driving force that keeps your company going through thick and thin. However – what would happen if, somehow, you were suddenly no longer in the equation? It’s unpleasant to think about, but, whether through disability or death, it’s possible that some day you could suddenly become unable to run your company or make decisions on its behalf. So, what protection do you have in place should an event of that kind come to pass? Many business owners fail to plan for such circumstances, and, as a result, are unaware of Business Property Relief (otherwise known as BPR). The legal experts at Prosperity Law understand how complex – and expensive – the process of dealing with the property and assets left behind by a business owner without this kind of protection can be. They’ve created this helpful guide that will explain to you exactly what is involved in obtaining Business Property Relief, and what it can do to support the future of your company.
What is BPR and Can I Get It?
Business Property Relief is an inheritance tax relief tailored specifically for businesses. If your business is unquoted and you have been the owner of some of its shares for more than two years, BPR will ensure that you and your family can get 100% relief on the value of the company. It also applies to land, buildings and structures, equipment, machinery and numerous other assets that you have acquired for use within your business. You can get 50% relief for these.
What if I Decide to Sell My Company?
Don’t let the possibility of your business changing hands affect your decision to obtain BPR. The relief will still be effective if inheritance tax is charged on that transfer should it occur within seven years before your death.
What Arrangements Do I Need to Make?
The first step towards organising watertight protection for your company and assets and avoiding the application of inheritance tax is to add the plan to your Will. Once it is officially recorded and put into action, any threat to the business – be it from the tax itself or any necessity to sell assets on to pay said tax – will be nullified. It is also vitally important that you instate Lasting Powers of Attorney straight away. This means that there will always be someone watching over your business and keeping note of the status of your Business Property Relief. There is no way that this will weaken any authority you currently have over your company and its activities, nor does it mean that you are passing over any of the power you have as a manager or CEO. What it does is to confirm that you have selected someone to oversee the running of your company and ensure that all elements are functioning to the highest standard should you cease to be able to. It’s a situation that is difficult to think about, particularly if you hold the majority of the authority within your company or its ins and outs are complex and significant, but arranging a “safety net” now will mean that much of the stress and expense will be prevented, and that your business will continue to flourish.
How Do I Obtain Business Property Relief?
The most straightforward and effective way of arranging Business Property Relief immediately is to make contact with a trusted commercial or corporate insurance broker or legal expert, and they will guide you from there. Be sure to explain the exact circumstances of your business and its undertakings to the specialist of your choice, so that they can tailor the relief exactly to your requirements. It’s best to make arrangements as soon as possible for your own peace of mind, for the benefit of your family and for the future security of your company and its assets.
Can I Contact Prosperity Law About Business Property Relief?
Absolutely. Prosperity Law offers legal support and advice for the corporate and commercial sectors, including commercial property. Their helpful and knowledgeable team are on hand to take your call between 9 am and 5.30 pm from Monday to Friday, so feel free to contact them in order to begin the process. The number to call is 0161 667 3697. You can also email them via info@prosperitylaw.com. The firm has extensive experience working with high net worth clients and complex, sensitive matters, so you can expect superb attention to detail and excellent service.
