If you are a business owner, succession planning and insurance are important. Business succession planning is simply the process of planning for what you want to happen if you (or your co-owner, if you have one) were to die or fall seriously ill.
If this happens, family and business partners can be left in a complex situation. In some instances, the business ends up in the wrong hands, or in worst cases can fail. These situations can befall sole traders, partners and shareholders in limited companies, although they can all be avoided with sensible business succession planning.
Please note that all scenarios and examples included in this guide are fictitious.
The Guide covers the following topics:
- Sole Traders
Your business is one of your assets and can die with you
A specific partnership agreement can ensure your business continues to be viable
- Limited Companies
You need to plan so your shares end up in the right hands
- Serious Illness
Critical illness can hit at any time and affect your business without sensible provision
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This publication is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The Financial Conduct Authority does not regulate tax advice, so it is outside the investment protection rules of the Financial Services and Markets Act and the Financial Services Compensation Scheme. This publication represents our understanding of law and HM Revenue & Customs practice as at 11 April 2022.