Smart Company™ and succession planning
We spend a good deal of our time helping landlord businesses restructure into the optimum vehicle, which most often is a limited company. For new entrants, or even small portfolio holders, a Smart Company™ is the best foundation for a tax-efficient, robust, sustainable and scalable business. The share structure can be adapted to existing companies, or bolted-on to new companies created for SIS incorporations.
The package we offer includes a full succession planning programme, including wills, LPAs and family trusts.
Off the shelf companies will allot their shareholders just one type of share, carrying all the voting, dividend and capital rights. It is far more desirable to have multiple classes of share, each with different rights, tailored to your personal need and goals.
You can decide which classes of share will carry dividend rights. Different classes can carry different dividend rights. For example, you might allot shares to a parent in the lower rate tax band, for school fee planning. It is also possible to create a class of share that has a nominal initial value, because they carry no voting or dividend rights, but to which all capital appreciation can be attributed, for IHT planning purposes. The growth in value of the business would then fall outside the IHT estate.