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Family Business Focus

Keeping you informed on the key issues impacting the success and growth of your business.

Regular top tips and resources

Helping your family business thrive for future generations.

The family business road to success

How to navigate ‘Lockdown 2.0’

Author: Rebecca Durrant, Partner, National Head of Private Clients

Some of the biggest and most successful businesses in the UK are or certainly started out as family businesses. One of the reasons for this is simple, the owners are truly invested as the success or failure of the business has a personal impact for them, their family and generations to come.

Businesses in all sectors have had to adapt to lockdown in different ways but for family businesses it has presented different challenges:

  • succession and next generation planning – the best laid plans pre-lockdown may not now be viable as the market remains uncertain
  • remuneration planning – many business owners have had pay freezes or certainly held off dividend payments but how long is this sustainable
  • tax reform – this could affect business owners on many different levels. While businesses are grateful for the financial support the government has given, they are all too aware that this will eventually need to be repaid but how is as yet unclear.

That said family businesses are nothing if not resilient and adaptable. We have seen some businesses introduce innovative adaptations to product lines, service and delivery that may not always enable them to sustain growth, but are certainly helping them keep going throughout the pandemic.

What should family businesses do?

The future is still uncertain and the road ahead is unlikely to be smooth for anyone. During these uncertain times, family businesses should:

  • protect your cash where you can by making the most of funding opportunities and keeping a close eye on expenditure.
  • look after your people so you have a good team to hit the ground running when things do improve, keeping in touch particularly remotely can be difficult especially when we are all busy and firefighting. A call just to check in can go a long way and help and ease the isolation
  • be ready to adapt to what could be our new normal as we may never conduct business in the same way again. This could have implications for product design, property space and client delivery. The successful business will be those that embrace this change and adapt their businesses to it.

The route for your business journey may have changed but the destination can still be the same!

For more information on the issues addressed in this article or to discuss your circumstances, get in touch with Rebecca Durrant or your usual Crowe contact.

Previous topics covered in our Family Business Focus series

How to use Trusts to gift shares of a family business
Creating a Trust has tax implications but can be advantageous if used in the right way. How Trusts can be used to gift shares of a family business.
Top tips for dealing with intergenerational conflict in family businesses
Ways to help manage any conflicts you may have, both now and in the future.
Getting the economy moving post COVID-19 – is low taxation the answer?
It seems inevitable that at some point in the near future, taxes are going to have to rise.
Protecting the family business – reorganising to reduce risk and find efficiencies
Looking at the options to reduce the level of reserves at risk and potential wins to achieve this.
How could future tax reform affect family businesses?
How could possible potential tax rises affect family businesses and its owners?
Making Tax Digital: Key questions for family businesses
How will MTD impact your business, what you need to consider and the next steps.
What does the end of the COVID-19 government support schemes mean for family businesses?
Secure support for your business to get you through there uncertain times.
Five top tax tips for family businesses coming out of lockdown
Tax issues to raise with your advisor ensuring the business thrives.
Gifting shares to the next generation
 The tax consequences of passing the business on to your successors. 
How to use Trusts to gift shares of a family business
Creating a Trust has tax implications but can be advantageous if used in the right way. How Trusts can be used to gift shares of a family business.
Top tips for dealing with intergenerational conflict in family businesses
Ways to help manage any conflicts you may have, both now and in the future.
Getting the economy moving post COVID-19 – is low taxation the answer?
It seems inevitable that at some point in the near future, taxes are going to have to rise.
Protecting the family business – reorganising to reduce risk and find efficiencies
Looking at the options to reduce the level of reserves at risk and potential wins to achieve this.
How could future tax reform affect family businesses?
How could possible potential tax rises affect family businesses and its owners?
Making Tax Digital: Key questions for family businesses
How will MTD impact your business, what you need to consider and the next steps.
What does the end of the COVID-19 government support schemes mean for family businesses?
Secure support for your business to get you through there uncertain times.
Five top tax tips for family businesses coming out of lockdown
Tax issues to raise with your advisor ensuring the business thrives.
Gifting shares to the next generation
 The tax consequences of passing the business on to your successors. 
For more information, visit our Business lifecycle.

How we can help

We can help you navigate the business lifecycle and support you through the challenges and opportunities at each stage of your journey to success. For more information please visit our Business lifecycle or speak to your usual Crowe contact.

Contact us

Our national private clients team provides specialist tax advice to some of the most successful individuals and families in the UK. We understand that absolute discretion is essential and take pride in building long-term relationships with our clients. Get in touch with us today.
Rebecca Durrant
Rebecca Durrant
Partner, National Head of Private Clients
Manchester