How we planned succession for a Southgate Greek Cypriot family business
Client K runs a Greek Cypriot restaurant and catering business in Southgate that has been in the family for over twenty years, trading through a Ltd company. He wanted to begin transferring ownership to his two adult children who both work in the business, but had no plan for doing so tax-efficiently and was worried about the tax cost of handing over.
We built a ten-year succession plan. Because the shares qualify for Business Property Relief at 100% (unquoted trading company), gifting shares to the children carries no immediate IHT charge and, with the gift being a Potentially Exempt Transfer, falls fully outside the estate after seven years. We staged the share transfers to bring the children in gradually as shareholders and directors, brought their remuneration onto proper market-rate PAYE for their genuine roles, and structured dividends across the family to use everyone's allowances and bands.