Transferring the business

Many small business owners want to pass on their business to a family member, often a son or daughter. This action can help secure the family's long-term financial future while retaining business property relief intact, as long as the family member keeps running the business.

Transferring the business

If you want to transfer your business interests to a family member or successor, a gradual approach can work best. You can use your exempt gifts and potentially exempt transfers to build up the holding of your relative or successor. Likewise, get your successor involved in the day-to-day running of the business several years before you anticipate him or her taking over.

If your business is incorporated – has shares and shareholders – then all you have to do is transfer the shares in the business from your name to that of your successor. However, if the business is run as a sole trader or a partnership, all of the individual assets of the firm will have to be transferred. Doing so can be both time-consuming and costly.

Add comment

Security code

Copyright © 2019 | "The Theory of the Business"