{"id":5074,"date":"2023-03-28T14:39:13","date_gmt":"2023-03-28T14:39:13","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=5074"},"modified":"2023-03-28T14:39:14","modified_gmt":"2023-03-28T14:39:14","slug":"how-to-prepare-for-business-succession","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/how-to-prepare-for-business-succession\/","title":{"rendered":"How to prepare for business succession"},"content":{"rendered":"

The pandemic and lockdowns would have had many businesses considering the future and what may happen if they become ill or incapacitated or what happens to their business after they retire or the unexpected happens.<\/p>\n

It could be that if you are in a partnership, you let a partner take full control or pass ownership to younger members of the family.<\/p>\n

Planning is crucial to make sure the business you have worked hard at creating is in safe hands when the time comes.<\/p>\n

Making a will is a necessity because if you or your business partner die, having a will in place makes sure that the\u00a0business assets\u00a0and shares are managed in the right way.<\/p>\n

What you should do:<\/p>\n

Be clear about the future<\/strong><\/p>\n

Revisit your\u00a0business plan\u00a0to see how you\u2019re performing against your goals and ambitions and whether your successor can be trusted and is capable of taking your business forward. If it is a limited company, new directors should be appointed before you step down.<\/p>\n

Get the right people on board<\/strong><\/p>\n

If not an established partner, you will want someone with the necessary skills and similar experience. Current employees with continued training and mentoring will continue to provide a solid base for the new setup.<\/p>\n

Let the relevant authorities know<\/strong><\/p>\n

You\u2019ll also need to\u00a0tell Companies House<\/a>\u00a0about any changes in directors within the business<\/p>\n

Do not fall foul of tax liabilities<\/strong><\/p>\n

If you\u2019re\u00a0VAT registered, you may be able to transfer registration to the new owner. You may also need to sell any shares if you\u2019re in a business partnership.<\/p>\n

Selling or changing ownership of a company can produce complicated tax issues. So always seek professional advice.<\/p>\n

Other key steps which need to be considered to take when preparing for business succession include:<\/p>\n