Zoppi & Co Advises on UK LTD Succession Planning To Minimise Inheritance Tax

Client A successful business owner with significant property investments held through a UK limited company sought advice on minimising inheritance tax liability for his family.

The Challenge The client owned a company limited by shares that held substantial property assets. Without proper planning, these assets would be subject to significant inheritance tax upon his death, potentially creating a substantial financial burden for his beneficiaries.

The Solution Working closely with the client's tax advisors, Zoppi & Co implemented a tailored share restructuring strategy. We drafted bespoke articles of association that created different classes of shares within the company structure. The client's children were allocated specific shares that carry rights only to capital distributions - known sometimes referred to as 'growth shares'. This arrangement allows future growth in the company's value to accrue to the children while maintaining the client's control over the business operations.

The Outcome The restructuring successfully positioned the client to minimise inheritance tax exposure while preserving family wealth for future generations. The solution maintained operational flexibility while achieving the desired tax efficiency.

Solicitor Comment "This case demonstrates how proper corporate structuring can achieve significant tax savings while meeting our client's commercial objectives. It was particularly satisfying to work collaboratively with the tax advisory team to deliver a solution that protects the family's long-term interests." - Malcolm Zoppi, corporate solicitor