You may need to consider Inheritance Tax Planning when setting up your business and deciding on the shareholders, and later deciding on which assets you personally own and which belong to your business.
Some advice from HMRC
“Planning ahead for when you die allows you to set out clearly who should get what from your estate. Also, you can maximize Inheritance Tax reliefs and exemptions if your estate might be worth more than the Inheritance Tax threshold. The threshold is £325,000 and will remain so until 2014-15.
If you own a business or a share of a business, this is included in your estate for Inheritance Tax purposes. However, Business Relief may allow you to pass on some of the business free of tax, either during your lifetime or as part of your will.”
Inheritance tax planning should be a team effort incorporating your accountant, an IFA and possibly, a solicitor. We will work with your advisors, or introduce you to other trusted professionals.