10 Steps to Reduce Inheritance Tax in Your Business Succession Plan

When planning for the future, it’s essential to consider how your business and personal estate will be treated for inheritance tax purposes. By putting the right structures in place, you can reduce unnecessary tax liabilities and protect your wealth for your chosen successors. At Oldfield Advisory, we support clients in developing succession strategies and work closely with legal advisers to ensure smooth implementation.

Identify when you would like to exit

Knowing your desired timeline for stepping back helps to frame the rest of your succession planning. We work with business owners to map out realistic timelines and ensure the tax strategy aligns with your exit goals.

Identify potential successors

Consider who will take over – family members, management, or a third-party buyer. Each option has different tax implications. We can help assess the pros and cons of each route and prepare your plan accordingly.

Develop your exit plan and discuss with key stakeholders

Involving family members, business partners, and advisers early avoids surprises later. We facilitate these discussions to make sure everyone understands the plan and is aligned.

Undertake a company share valuation

A professional valuation establishes the starting point for succession planning. Oldfield Advisory works with valuation experts to give you an accurate picture and highlight potential tax liabilities.

Clarify your needs and requirements post-exit

Determine the capital and income you’ll require after leaving the business. We help model these needs so that your IHT and succession plan provides long-term financial security.

Review the most tax-efficient routes for exiting

From share buybacks to trust structures and reliefs, there are multiple ways to realise capital. We evaluate the best options for your situation and co-ordinate with legal advisers to implement them effectively.

Formulate an inheritance tax strategy

This may include making lifetime gifts, using Business Relief, or restructuring ownership. Our approach builds this strategy around your overall succession plan to minimise tax exposure.

Formalise your succession plan

Document your intentions in conjunction with your successors and ensure all arrangements are legally robust. We liaise with legal firms to create the required documentation while keeping the plan practical and tax-efficient.

Communicate your plan to all stakeholders

Transparency reduces disputes and ensures your wishes are respected. We provide ongoing guidance and communication support, helping you and your stakeholders stay informed.

Implement the plan with your advisers

Execution is critical. Oldfield Advisory manages the process alongside legal and tax advisers, making sure your succession and IHT strategy is carried out seamlessly.

In conclusion…

Inheritance Tax doesn’t have to erode the wealth you’ve worked so hard to build. With a clear exit strategy, a structured succession plan, and professional guidance, you can protect your estate and secure your family’s future. At Oldfield Advisory, we help business owners through every stage of this journey – from planning and valuations, to engaging with legal firms and ensuring all stakeholders remain informed.

If you’d like to discuss your own succession plan and inheritance tax strategy, our team of specialists is here to help.

Frequently Asked Questions

Q: Why is inheritance tax such a big issue for business owners?
A: Business assets can form a large part of your estate, and without planning, their value can trigger significant tax liabilities. We help structure plans to mitigate these.

Q: What is Business Relief and how does it help?
A: Business Relief can reduce the value of qualifying business assets for IHT purposes, by up to 100%. We can assess eligibility and ensure relief is maximised.

Q: When should I start planning my succession and inheritance tax strategy?
A: The earlier you start, the more options you’ll have. Ideally, planning should begin several years before your intended exit. Oldfield Advisory supports business owners at every stage, from early planning to final implementation.

Q: Do I need a professional valuation of my company?
A: Yes. A valuation provides a clear basis for succession planning and calculating potential tax exposure. We can arrange this as part of your wider strategy.

Please note: This article is for general information purposes only and was correct as at the time of writing (26/09/25) and does not constitute financial advice. Budget proposals may be subject to change. You should contact us before taking any action as a result of the contents of this summary.Tax rules and legislation are subject to change, and their application depends on your individual circumstances. We recommend seeking advice from a suitably qualified tax adviser, and where relevant, an FCA-authorised financial planner. Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.