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The majority of owner manager manufacturers we speak to have got
the commercial strings of their business comprehensively tied up.
However, as secure as their grip on the rudder of their business
is, if personal matters intervene no amount of commercial planning
can prevent significant disruption to the business and its
organisation.
Death is a subject which most of us would rather not
contemplate. However, for the owners of manufacturing businesses,
it will not only have a major impact on their families and loved
ones, but can also pose a real threat to the future of the
business. With considered and prudent planning, owners can protect
the continuity of the business and its management in addition to
providing their loved ones with financial security should the
unexpected happen.
In developing a succession plan for the business it will also be
important to consider the potential tax implications arising on an
owner's death and devise strategies that allow business assets
to be passed on tax efficiently with minimum deterioration to the
business and the owner's estate. Inheritance Tax Business
Property Relief (BPR) at the rate of 100% is given to owners of
most businesses for the value of their direct interest in the
business whether that is as a sole trader, as a member of a
partnership or shares in an unquoted company. As BPR can operate as
a complete exemption from Inheritance Tax it is extremely valuable.
However, in the absence of careful planning, BPR may be lost with
the result that the owner's estate is subject to an unnecessary
charge to Inheritance Tax.
Thomas Eggar LLP is a limited liability partnership
registered in England and Wales under registered number OC326278
whose registered office is at The Corn Exchange, Baffin's Lane,
Chichester, West Sussex, PO19 1GE (VAT number 991259583). The word
'partner' refers to a member of the LLP, or an employee or
consultant with equivalent standing and qualifications. A list of
the members of the LLP is displayed at the above address, together
with a list of those non-members who are designated as partners.
Regulated by the Solicitors Regulation Authority. Lexcel and
Investors in People accredited.
Thomas Eggar LLP is not authorised by the Financial
Services Authority. However, we are included on the register
maintained by the Financial Services Authority so that we can carry
on insurance mediation activity which is broadly the advising on,
selling and administering of insurance contracts. This part of our
business, including arrangements for complaints and redress if
something goes wrong, is regulated by the Solicitors Regulation
Authority. The register can be accessed via the Financial Services
Authority website. We can also provide certain further limited
investment services to clients if those services are incidental to
the professional services we have been engaged to provide as
solicitors.
Thesis Asset Management plc, our associated financial
services company, provides a comprehensive range of investment
services and advice. Thesis is owned by members of Thomas Eggar LLP
but is independent of and separate to it. No lawyer connected with
Thomas Eggar LLP provides services through Thesis as a practicing
lawyer regulated by the Solicitors Regulation Authority. Thesis is
authorised and regulated by the Financial Services Authority.
Thesis has its own framework of investor protection and
professional indemnity cover but Thesis clients do not enjoy the
statutory protection of solicitors' clients.
The contents of this article are intended as guidelines for
clients and other readers. It is not a substitute for considered
advice on specific issues. Consequently, we cannot accept any
responsibility for this information or for any errors or
omissions.
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