At some point family businesses face the issue of succession and transfer of ownership needs to be addressed. Owners will need to consider a sale or possibly a Management Buy Out, but the majority of family businesses will want to hand on to the next generation.
Whether or not the next generation is willing to take over the existing family business, there are serious tax implications of handing over the business. The two primary scenarios, both of which require effective planning, are firstly, handing the business on as a gift, and secondly, selling the business for some cash.
There are some serious concerns that need to be considered from a tax perspective prior to selling or passing on the family business. We have considerable expertise in acting on behalf of family businesses and dealing with succession planning.