Passing down the family business is easier in the UK

The UK has one of the most favourable tax regimes for families who want to transfer their business from one generation to the next according to the 2018 KPMG Enterprise Global Family Business Tax Monitor (tinyurl.com/y7kwva3s).

The report examines the tax treatment for transferring a family business in 65 jurisdictions.

It found that tax costs vary. Some countries offer substantial tax breaks to help family businesses in the hands of the next generation while others tax transfers within families as they do any other transaction.

The UK was ranked favourably for its inheritance tax regime. The report found that the reliefs available on the transfer of a business through inheritance reflected longstanding beliefs in the benefits of business passing generationally. The UK ranked above the US France Spain and the Netherlands.

Tom McGinness co-chair of KPMG’s global centre of family business excellence said:...