- Original Poster
- #1
Hi,
I am a partner in a family partnership. There are 6 partners including my father and his sister who are the major shareholders with 92%. The remaining 8% is divided between the kids (over 18).
The business is a commercial property portfolio with income paid monthly from the commercial rentals.
We have no Partnership agreement in place but this is something we are working on.
My question:
My father is looking to pass on some or all of his shares to myself and my sister in the most tax efficient way.
He could do it now, over a period of years or wait and leave in as inheritance in his estate.
What are the financial implications of transferring a chunk of shares now, drip feeding say a % per years until death, or keeping it all and distributing all his shares as inheritance.
Are these shares tax free if they are transferred and he lives for more than 7 years so avoiding IHT, or are they still subject to some other form of tax. Income/ Capital gains?
Could they be placed in trust tax free?... or any tax payable covered by a life insurace policy written in trust?
Could they be put in the younger generations names an we pay him an income?
What's the best solution.
Many thanks.
I am a partner in a family partnership. There are 6 partners including my father and his sister who are the major shareholders with 92%. The remaining 8% is divided between the kids (over 18).
The business is a commercial property portfolio with income paid monthly from the commercial rentals.
We have no Partnership agreement in place but this is something we are working on.
My question:
My father is looking to pass on some or all of his shares to myself and my sister in the most tax efficient way.
He could do it now, over a period of years or wait and leave in as inheritance in his estate.
What are the financial implications of transferring a chunk of shares now, drip feeding say a % per years until death, or keeping it all and distributing all his shares as inheritance.
Are these shares tax free if they are transferred and he lives for more than 7 years so avoiding IHT, or are they still subject to some other form of tax. Income/ Capital gains?
Could they be placed in trust tax free?... or any tax payable covered by a life insurace policy written in trust?
Could they be put in the younger generations names an we pay him an income?
What's the best solution.
Many thanks.
