Business Succession Planning
Ensure your business can continue and ownership can transfer smoothly.
Business succession planning involves putting the right structures in place to ensure your business can continue to operate and ownership can transfer smoothly — whether through the death of a shareholder, retirement, or other circumstances. Insurance is a key component of any succession plan.
What is Business Succession Planning?
Business succession planning is the process of preparing for the transfer of business ownership and control. It involves a combination of legal structures (such as shareholder agreements and Cross Option Agreements), financial planning, and insurance products (such as Shareholder Protection and Key Person Insurance) to ensure the business can continue and all parties are treated fairly.
Who is it suitable for?
Key Benefits
Tax Considerations
Business succession planning can involve significant tax considerations, including Business Property Relief (which can reduce inheritance tax on business assets), Capital Gains Tax on share transfers, and the tax treatment of insurance payouts. A well-structured succession plan can significantly reduce the overall tax burden on the business and its owners. We work alongside your accountant and solicitor to ensure the plan is structured correctly.
Tax treatment depends on individual circumstances and may be subject to change. We recommend seeking independent tax advice.
Example Scenarios
Two-director company planning ahead
Two directors of a successful business arrange Shareholder Protection alongside a Cross Option Agreement. If either dies, the surviving director has the funds and the legal framework to buy out the deceased's shares — ensuring the business continues without disruption.
Family business succession
A family business owner wants to pass the business to their children on retirement. A succession plan is put in place, including life insurance to cover any inheritance tax liability, ensuring the business can be transferred without the need to sell assets.
Exit planning for a retiring director
A director approaching retirement wants to ensure their shares can be bought out by the remaining directors. A combination of Shareholder Protection and a formal buy-sell agreement provides a clear, funded exit route.
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Why Choose JK Insurance Brokers?
- Whole-of-market access
- FCA authorised & regulated
- No broker fees
- Business protection specialists
- Personal, one-to-one service
- UK-wide advice