As a business owner your attention can be pulled in various directions and second guessing what this or indeed the next few governments will alter within the UK tax code can be a distraction.

If you are of the view that Labour’s wholesale change to the Inheritance Tax (IHT) relief for businesses will not be reversed by a subsequent government, it is worth setting aside time to consider the impact of the changes next April.

• Review your succession plan, is it time to pass on some of your business interests, implement transactions to extract value or formalise sale plans?
• Death does not always transpire in the order we expect. Ask the obvious question of your chosen beneficiaries, do they want what you are offering?
• Consider if existing shareholder protection policies are sufficient in value. Gift Inter Vivos policies can be a useful tool for lifetime gifting.
• Model finance costs with the recipients to cover any IHT exposure related to the business.
• Remember that the current capital gains tax rate outside of Business Asset Disposal Relief is now 24%, higher than the effective proposed IHT rate. Employee Ownership Trusts have become incredibly attractive as a result.
• The £1 million business related allowance is not transferable to your surviving spouse, does your Will ensure that it can be used in the event of your death?
• Do you have existing trusts holding business related assets over the £1m allowance? If so, it is worth reviewing these along with considering the benefit of additional trusts to make further use of the new allowance.
• Evaluate whether the company articles of association can provide sufficient protections where a trust is not desired or maxed out. It may be possible to lock in a fixed value to existing shares, ensuring value/growth over the new allowance can be moved out of your estate.