Blog: Succession Planning

The CLA recently hosted two succession planning events in the Midlands, which were kindly Supported by John Bunker from sponsors Irwin Mitchell. At these events, the CLA tax specialists informed members about the key aspects which need consideration, if you desire to avoid unnecessary attention from HMRC. Attention, that can lead to a tax bill of 40% of the assets that you wish to pass on. Therefore, it is essential that you give this area due consideration. Although tax can be, both simultaneously monstrous and boring, you must look at this area and plan accordingly. It is very easy in such a complex area to be caught out.

It is therefore essential that you take specialist bespoke advice. Advice that can be sought from the CLA tax team, free of charge for members, by contacting the London office (020 7235 0511). But you should also, as a priority, contact you accountant as they should work with any specialist tax adviser. For more information about specialist advisers in this area, click here.

Members are encouraged to familiarise themselves with CLA literature relating to this area. This is recommended, as members should view time spent on succession planning as potentially one of the best investments they can make. Please see the below links where information in this area can be located.

It is also prudent to look at succession planning, as an exercise in protecting priceless familial relationships. As unfortunately, it is too easy for family relationships to break down due to lack of succession planning and a dearth of proper communication. Individuals, in a vacuum of information, will fill this space with expectations, desires and assumptions that may be misplaced and can have devastating impacts. So succession planning, is not just a form of purely financial management. This further emphasises the need to discuss and plan the matter of succession planning thoroughly.