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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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I have a public relations company which is limited. We do not

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I have a public relations company which is limited. We do not own business premises but rent. The company does not have any assets except computer equipment and office equipment. What is the position re inheritance tax as I have been quite ill and would like to protect my employees. Can I make them shareholders so they can continue with the business if I should die? JACKI Wadeson.
Submitted: 1 year ago.
Category: Law
Expert:  tdlawyer replied 1 year ago.
Hi Jacki, thanks for your question. My name is Tony. I can assist with this.
You can leave your shares to your employees if you wish to. This would mean that they own the company when you die. However, you need to make sure that there is nothing in the Company's Articles of Association that might prevent this or indeed, that there is no shareholders agreement in place between you and other shareholders already that might stop this.
What you ask for is certainly possible.
You could even grant shares now, during your lifetime, calling them a different category from your own shares, and which have limited dividend rights.
Whatever you choose to do, the company will legally continue beyond your death anyway, as a company does not die and has a separate legal personality of its own. You just need to make sure somebody can run it - and all will continue as normal, with your dividends going to your estate, unless you choose, to leave shares to the employees.
As for inheritance tax, this is payable on your estate, by reference to the value of the estate.
You would need to take specialist advice really on tax and estate planning from a solicitor who would need to go through all your details and assets as an individual (quite apart from the company position) to determine what might be payable by your own estate - i.e. not the company, as a company does not pay inheritance tax.
Regards
Tony
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