Family-run businesses are more than just enterprises — they’re legacies. With upcoming changes to inheritance tax reliefs (full BPR/APR now capped at £1 million), the need for thoughtful succession planning has never been more urgent. Passing a business to the next generation isn’t just about tax efficiency; it’s about preparing the people who will carry it forward.

Why Succession Planning Matters

Many family businesses have operated under the assumption that reliefs like BPR and APR would fully shield them from inheritance tax. From April 2026, that protection will be limited: the first £1 million of qualifying assets retains 100% relief, but anything above only receives 50%.

Without proactive planning, owners risk:

• A substantial tax bill on passing down the business

• The need to sell or borrow against assets to meet IHT obligations

• Disruption to the business at a critical moment

Succession planning isn’t just about mitigating tax — it’s about ensuring the smooth continuation of operations, safeguarding employees, and maintaining family harmony.

Key Steps for Effective Succession Planning

1. Review Ownership and Estate Structure
   Understand what’s owned, who owns it, and how it may be impacted by upcoming IHT changes.

2. Start Succession Conversations Early
   Engage the next generation in planning, training, and decision-making. Preparing them early reduces risk and ensures they’re confident in taking the reins.

3. Strategic Gifting and Trusts
   Carefully planned gifts, trusts, or even demergers can help manage tax exposure while keeping control in the right hands.

4. Update Wills, Pensions, and Agreements
   Make sure all legal structures reflect the desired future ownership and distribution plans.

5. Provide Funding and Liquidity Solutions
   Life insurance or other funding strategies can cover tax liabilities without forcing the sale of core business assets

How Quove Supports Multi-Generational Transition

At Quove, we recognise that succession planning is not just a tax exercise — it’s about preserving your legacy, protecting family relationships, and ensuring the next generation is ready to lead with confidence. Our approach combines Capital Gains Tax planning, estate structuring, and trust strategies to support a smooth and tax-efficient transfer of wealth and control.

Holistic Estate & Succession Planning
We review your personal and business assets together — not in isolation — to ensure your estate plan aligns with your long-term family and commercial goals. From wills and shareholder agreements to life insurance and estate liquidity planning, we help you structure your affairs to protect wealth while maintaining control where it matters.

Capital Gains Tax & Business Transfers
Passing on a business, gifting shares, or restructuring ownership can trigger CGT — even when no money changes hands. We calculate potential liabilities, identify applicable reliefs (including Business Asset Disposal Relief and holdover relief where appropriate), and optimise the timing and method of transfer to minimise tax leakage and maintain stability.

Trusts for Control and Protection
Trusts can be invaluable in multi-generational planning. They allow you to protect assets for future beneficiaries, maintain oversight while transitioning control, and reduce exposure to both CGT and IHT. Whether establishing a family trust, safeguarding business shares, or managing assets for younger beneficiaries, we guide you through setup, governance, compliance, and ongoing trust management.

Preparing the Next Generation
Transition isn’t just about paperwork — it’s about people. We help families build clarity, confidence, and cooperation across generations through structured discussions, leadership preparation, and guidance on roles, responsibilities, and decision-making. Our aim is to reduce conflict and ensure the right individuals are ready to step forward.

Lasting Support, Not One-Off Advice
Succession is a journey, not a single event. As legislation evolves and family circumstances change, we provide ongoing strategic and administrative support — from annual trust reviews to future gifting strategies and estate updates — ensuring your plan remains effective over time.

The Takeaway

Succession planning is no longer optional. With reliefs being capped and the future of family businesses at stake, the earlier you start, the better prepared your next generation will be to take over, thrive, and continue your legacy.

If your family business or farm is approaching this critical stage, Quove is here to help you plan, protect, and pass on your legacy with confidence.

Contact Us today

Categories: Insights