Business succession and exit planning

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Business succession planning for family firms – protect your legacy from inheritance tax

Major inheritance tax changes take effect from April 2026, potentially affecting how business assets are transferred or sold. Acting now could save your family up to 40% in tax.

Every business will face a change of ownership – whether passing it to the next generation, bringing in new directors or preparing for a sale. Effective business succession and exit planning ensures continuity, protects your family and preserves the value of the business you’ve built.

Without a clear plan, inheritance tax (IHT) can place a heavy financial burden on successors and even force the sale of assets. Early, structured planning can reduce tax, protect wealth and deliver a smooth transition.

Act now to secure your position before April 2026. Book a free, confidential consultation.

Inheritance tax and business succession

Many business owners ask: “Do you pay inheritance tax on a business?” The answer is yes – a business forms part of your estate and can be liable for IHT. How much tax is due will depend on how your business is structured, who inherits it and whether any reliefs, for example, business property relief (BPR), apply.

With new inheritance tax rules coming into effect on 6 April 2026, now is the time to check your current arrangements. Our accountants can assess your eligibility for reliefs, identify risks and help you plan a tax-efficient transition.

Planning your exit or ownership transition

Business succession planning isn’t just about tax – it’s about continuity and preparing your business for the future. Our service includes:

  • Planning your preferred business succession or exit route – whether family transfer, management buy-out, or sale.
  • Reviewing inheritance tax exposure on shares, partnerships and trading assets
  • Creating a business succession strategy that balances tax efficiency with family needs
  • Supporting Wills, trusts and shareholder agreements to protect ownership
  • Advising on exits or sales to reduce IHT exposure and reinvest proceeds effectively.

We provide clarity and reassurance, helping you plan the transfer of your business with confidence.

Our structured approach to business succession planning

We combine accountancy, tax, and strategic planning expertise to help business owners:

  • Understand the financial, legal, and tax implications of succession or exit.
  • Create a practical timeline and leadership plan aligned with your goals.
  • Restructure the business if needed to maximise available reliefs.
  • Prepare documentation for HMRC compliance, valuation and ownership transfer.

Why choose us

  • Over 40 years advising owner-managed and family-run businesses.

  • Chartered accountants with specialist experience in inheritance tax and family succession.

  • Proactive support. Helping you prepare for future changes well in advance.

  • Straightforward advice: Clear guidance at every stage.

  • Trusted by family firms across the North West for practical, personal service.

Protect your family business before the April 2026 IHT changes. Book your free, confidential business succession planning consultation today.

“Chadwicks guided us through the entire succession planning process with confidence. They helped us understand the inheritance tax implications, structure our company effectively, and prepare for a smooth transition to the next generation. We couldn’t have done it without their expertise.”

Family business owner, Cheshire

Business succession and exit planning – frequently asked questions

How does succession planning reduce inheritance tax?
Succession planning allows business owners to structure transfers well in advance, securing reliefs such as BPR and avoiding last-minute liabilities. By considering family goals, shareholdings and ownership structures early, families can pass assets without disruption while significantly reducing exposure to inheritance tax.
What challenges do family businesses face with inheritance tax?
Family businesses often face competing priorities. Passing shares equally between children may dilute control, while large tax bills can force the sale of assets.

In some cases, heirs may not wish to take over the business at all. Planning ahead helps balance ownership, secure reliefs, and avoid disputes.

What happens if my children don’t want to run the business?
This is a common challenge in family succession. Options include bringing in external directors, selling the business, or transferring shares in a way that protects family wealth without requiring children to manage the company.

Clear agreements and trusts can ensure assets are preserved while maintaining stability.

How does selling a business affect inheritance tax?
Once a business is sold, proceeds typically no longer qualify for BPR. This means the estate could face an IHT charge of 40% on those proceeds. With planning, it’s possible to reinvest in qualifying assets, gift or trust some of the proceeds, or structure the sale to reduce long-term exposure.
How are AIM shares treated for inheritance tax?

AIM shares can qualify for Business Property Relief if they’ve been held for at least two years and the company trades on the Alternative Investment Market. If they qualify, they may be 100% exempt from inheritance tax when passed on. However, from April 2026, the relief is expected to reduce to 50%, meaning some IHT may apply. It’s vital to review your AIM holdings now to confirm BPR eligibility and adjust your estate plan before the 2026 rule changes take effect.

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