Succession planning for family business owners
The family business survey commissioned by the Society of Trust and Estate Practitioners (STEP) in October 2024 found that:
- 69% of family business owners do not have a succession plan;
- 68% of family business owners do not have an up-to-date Will; and
- 56% of family business owners have not had a conversation with family members about their wishes for the business on their death.
Following the changes to Business and Agricultural Property Relief announced in the 2024 Autumn Budget, which are due to take effect from 6 April 2026 (see our comments on the draft legislation here), many family businesses will now be subject to inheritance tax and so succession planning for family business owners is more important than ever.
We would hope that there has been a significant improvement to the above statistics in the last few months given the recent publicity. However, for family business owners who have not yet given the changes real thought, the following are particularly important:
- Confirming their wishes for the succession of their family business.
- Reviewing and updating their Wills.
- Preparing Business Lasting Powers of Attorney (see our article on Business LPAs here).
- Obtaining an updated valuation of the family business to determine their inheritance tax exposure.
- Considering estate planning strategies to mitigate their inheritance tax exposure.
- Devising a strategy to fund any inheritance tax liabilities without disrupting business operations.
As always, it is vital that family business owners engage with their professional advisers in a timely manner before the rules change and ideally before the 2025 Autumn Budget.
The above points (and more!) are all being covered in our upcoming webinar Adapting to Change: Essential business strategies to consider for 2026 on Thursday 11 September 2025 (13:00 - 14:00), which is being delivered by my excellent colleagues Julia Cox, Mary Perham, Mike Barrington and James Stewart.
Please click here to register your interest.
"69% of family business owners do not have a succession plan detailing what will happen to the business and who will run and own the business after their death... and only 32% of family business owners in the UK have an up-to-date Will."
