The clients, both shareholders and husband and wife, are directors of a property management company, and also have a sole trader student property portfolio. The two businesses both have substantial capital value and inherent capital gains.

The shareholders are in their seventies and at the time, one of them was in ill health. They wanted to find a tax efficient method of passing the businesses to their sons, whilst passing other assets to their daughter.

BHP reviewed their businesses and estates. This review was carried out by specialists from BHP’s corporate and personal tax departments, as well as the firm’s trust and estates and financial planning teams.

The aim was to ensure that the planning was structured to obtain maximum tax advantage using the available tax exemptions.

The report considered tax issues including:

  • The capital gains tax inherent in the properties
  • The possibility of any properties standing at a loss
  • The potential inheritance tax liability and the lack of tax reliefs on property
  • Use of financial planning
  • Establishing a partnership and a new trading company

The client benefitted from our advice through extracting money from their businesses tax efficiently, mitigating Capital Gains Tax and moving money and assets into an Inheritance Tax friendly environment.