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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 8117
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I own 24 % of shares in my family business. I am 30 years

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I own 24 % of shares in my family business. I am 30 years old, but my health is frail. If I leave my shares in my will to my only sibling he will own 48% of the shares. Does this leave him with a tax liability if I die?
JA: What is your retirement age?
Customer: No idea. My father is 70 and still working.
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: Currently I am not a director, but my father, mother [who is herself terminally ill and does not have shares now] and my brother are the three directors of the family company. nobody is a majority shareholder.

Hello and welcome to JustAnswer. I’m taxadvisor.uk, a UK qualified accountant. Reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

I wish you well. If you leave a legacy to your sibling in your will, he will inherit it free of taxes as any inheritance tax on your estate will be settled by the executors before distribution of legacy. The threshold for IHT is £325,000. If your estate is below this figure then there will be no IHT payable.

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 17 days ago.
We are able to discount about 80 per cent of the value of the estate, but the value is currently more than £9,000,000 [nine million UK pounds]. Also, I just asked my brother and he is a trustee for the trust which holds 21 percent of the shares. I am now worried this would mean he would "control the majority" of the shares if I left him mine.

Thank you for your reply.

This is a matter for your to decide. You may need to talk with a lawyer to insert certain clauses in your will.

I hope this is helpful and answers your question.

Hi there

Just checking to see if you need me to clarify anything or if you have any additional questions - I am happy to help!

Many thanks

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