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Future-proofing the family business

Jack Edmonds, Director, Accounts and Outsourcing
25/06/2025
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Every business owner grapples with deciding what happens to their business when they step away, and succession planning helps to give peace of mind. Succession planning is not just about preparing for the inevitable - it’s about creating a roadmap that supports continuity, preserves family harmony, and now, more than ever, mitigates tax exposure.

With the UK government’s recent decision to reduce Business Property Relief (BPR) from 100% to 50% by April 2026, family businesses face a significant shift in how inheritance tax (IHT) will impact their long-term planning. This change could expose many family-owned businesses to substantial tax liabilities for the first time in decades, potentially forcing early retirement through premature asset sales or even business divestment to meet tax obligations.

In this evolving landscape, proactive succession planning is more critical than ever. The key to this planning lies in early, open, and structured communication, supported by a clear, long-term strategy that balances family dynamics with business needs. As experienced advisors to family-owner managed businesses, we find the following six considerations are key to successful plans and implementation:

1 - Start early

Succession is a process, not an event. Starting at least 10 years in advance allows time to:

  • identify and develop future leaders
  • gradually transfer knowledge and responsibilities
  • avoid rushed decisions during crises.
2 - Facilitate honest conversations

Family dynamics can complicate business decisions. A neutral facilitator can help:

  • surface unspoken expectations
  • clarify roles and aspirations
  • address potential conflicts before they escalate.
3 - Define roles and timelines

Using structured tools and methods, family businesses should:

  • Map out when and how leadership and ownership will change
  • Align family members’ goals with business needs
  • Create a shared understanding of the future.
4 - Prepare the next generation

Succession isn’t just about passing the baton - it’s about preparing the next runner. This includes:

  • education and mentoring
  • external experience
  • gradual increases in responsibility.
5 - Formalise the plan

Documenting the plan ensures clarity and accountability. This includes:

  • a written succession strategy
  • a One Page Plan involving professional advisers
  • legal documents (wills, shareholder agreements, powers of attorney).
6 - Revisit and adapt

Family and business circumstances change. A good succession plan is:

  • reviewed regularly
  • flexible enough to adapt
  • supported by ongoing communication.

With the continual shifts in the economic and political landscape, combined with the upcoming changes to BPR, starting the conversation early is not just wise - it’s essential.

We can help you navigate the complexities of generational transition, assisting in creating and implementing a cohesive and actionable strategy. Please get in touch with Jack Edmonds or your usual Crowe contact to discuss further.

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Jack Edmunds
Jack Edmonds
Director, Accounts and OutsourcingMidlands

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