IHT EFFICIENT USE OF SALE PROCEEDS

Following a successful sale, it is important to consider the Inheritance Tax (IHT) aspects associated with the proceeds and protect your loved ones from a burden they may not have been expecting.

LOSS OF IHT BUSINESS RELIEF PITFALLS

Exposure to IHT post-sale

In normal circumstances, an individual who owns shares in a trading company qualifies for IHT Business relief. For example, an individual owning shares in a business worth £5million, upon death would pay no IHT on the value of those shares.

However, once the business is sold for £5million, the former owner is potentially exposed to a £2million IHT charge as business relief no longer applies.

exposure to iht in mixed companies

Also, some trading companies have a non-trading element such as investment properties which could mean the whole company value being exposed to IHT

HOW BERKELEY CAN HELP

We have extensive experience in structuring and investing sale proceeds in a way which excludes them from IHT. The solution will be tailored to your own circumstances and preferences with ongoing oversight of from Berkeley of your structure to ensure continued compliance.