How could Inheritance Tax & Business Relief impact your family business?

Business Owners will most likely be aware of the important Inheritance Tax (“IHT”) relief currently available on the value of their businesses. Business Relief (“BR”) can relieve the full value of the business and it has long been recognised that the policy objective behind the relief is to prevent the breaking up or sale of businesses on death. Whilst this may be hugely advantageous for all businesses, the benefit is perhaps most keenly felt by family businesses where the legacy is as much about heritage and history as it is about a continuing trade. 

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Scottish Family Business Day – Q&A

Scottish family businesses are the engine room of the Scottish economy with many of them having been around for generations. Recent studies have shown that around 65% of all private businesses in the UK are family controlled and that family firms account for around 25% of UK GDP, over 45% of all UK employment and create significant wealth too.   

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Is your family business growing? How to incentivise your non-family manager

As the family business grows, succession can be a challenge. In order to bring the relevant knowledge and expertise to continue to grow the business, it is usually necessary to move to a more “corporate” structure and recruit senior management out with the family.  However, to attract and retain the right talent finding a remuneration package that rewards and empowers management, without conflicting with the family’s objectives, can bring challengesThis is an area many of our clients ask for assistance with as they strive continue their business success by striking the right balance of being commercially minded whilst continuing to protect their legacy. 

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2020 Year in Review – Family Businesses

Looking back on 2020

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Should you set up a family investment company to protect your family wealth?

There is no ‘one size fits all’ approach when it comes to protecting family wealth, passing this to future generations in an appropriate way, and at the ‘right time’. Setting up a Family Investment Company (“FIC”) is increasingly a popular choice for successful family business owners as part of their broader succession and tax planning strategy. Planning with trusts has a significant role in protecting family wealth for future generations, however with limitations placed on the value which can be settled into trust this typically forms only part of a plan in which FICs increasingly feature.  

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M&A activity in family business sector

As featured in The Scotsman Annual Deals Supplement AAB’s Edinburgh Managing Partner & Head of Deals in the Central Belt, Lyn Calder, reflects on M&A activity in the family business sector.

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Filling big shoes – The succession of family members

Following in the footsteps of a charismatic, highly successful leader can be daunting at the best of times; David Moyes, for instance, had his work cut out following Sir Alex Ferguson at Manchester United and Tim Cook followed a titan of innovation in Steve Jobs at Apple. The culture is often built around that person, the staff looks to them for direction and they make the job look effortless. If they have founded the company chances are that there will be a few long servers who owe their loyalty, and much of their careers, directly to the incumbent leader. That is a tough act to follow. Now, what if that person is also your Mum or your Dad?

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