The background

A well-known regional tourist attraction – long on our radar – had grown steadily over the years, reinvesting in the business and accumulating significant wealth in both property and cash.

With the founding shareholders approaching retirement, thoughts were turning to succession. The family was focused on ensuring a smooth transition to the next generation while also managing the rising risk of Inheritance Tax. Their existing advisers were also due to retire, prompting the client to seek out a fresh perspective – and that’s where we came in.

The challenge

The business was likely eligible for Business Property Relief (BPR) – potentially exempting it from Inheritance Tax as a trading entity. But that status isn’t guaranteed. Excessive non-qualifying assets, such as surplus cash or investment property, can tip the balance and compromise BPR eligibility.

Although they were safe for now, the founders were keen to future-proof their position. Alongside this, they wanted to pass greater ownership to the next generation and extract some of the wealth they’d built up to fund retirement.

During our conversations, we also uncovered ambitions to expand property holdings – which added another layer to the planning, from both a risk and tax perspective.

The solution

As always, we began by getting the fundamentals right – bringing accounts and tax returns up to date to get a clear view of the business.

From there, we dug into the detail. Conversations with the family helped us understand not just the numbers, but the dynamics and ambitions at play. We learned that the business already had the two-tier group structure we often recommend – where a holding company owns key assets, while trading continues in a subsidiary.

However, the structure wasn’t being used effectively. None of the valuable assets had been transferred into the holding company, meaning the benefits of risk separation and asset protection weren’t being realised. We implemented this change immediately.

We then created a plan for the first generation to extract value by ‘cashing in’ some shares, allowing them to benefit from the wealth they’d built while passing the baton to the next generation. We submitted the plan to HMRC and secured formal clearance – giving the client full confidence and certainty around the tax position.

The result

The result is a tax-efficient, HMRC-approved succession plan – aligned with the family’s long-term objectives.

• The next generation now holds a greater share of the business
• Inheritance Tax risks have been reduced by preserving BPR status
• The founders have extracted value at just 10% tax under Business Asset Disposal Relief formerly Entrepreneurs’ Relief)
• Wealth is now more effectively structured – protected, future-proofed and in line with the family’s goals

This is exactly why we do what we do – to help families make confident decisions, protect what they’ve built, and ensure their legacy continues on their terms.

What the client had to say

“We were very happy with our old advisors, but knew they were going to retire shortly. We did our research and decided that Wilson Partners (Formerly Mark Holt & Co) knew the tourism sector well, understood family business, and had the kind of approach we like.

At every step they have explained things clearly, listened to our concerns, and executed advice promptly and professionally.

We have complete confidence that as our business evolves, they will be able to help us at every step of the way.”

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