That path to retirement often starts long before the actual event, especially when you’re a business owner. When you’re in the position of managing your own company, there are more components you need to consider before making the transition into retirement.

The time required to synchronise your personal and business plans should not be underestimated, and things might not always go as initially planned. Because of this, we recommend to start making plans at least two or three years in advance. This not only gives you times to work out your plans, but also discuss with loved ones, and figure out the logistics of how the company will function without you.

When making a retirement plan, or before stepping away from your business, you may also want to consider:

• Updating your Will - If there have been any major changes in your family of personal circumstances
• Making the most of the tax reliefs available - Incentives and tax reliefs can help mitigate the tax burden for you, your business, and any potential investors
• Wealth protection - Make sure your personal affairs are managed from a legal standpoint with Wills, Powers of Attorney, pre and post-nuptial agreements, and trusts, so that tax liabilities don’t prevent you leaving your business as you would wish
• Aligning personal documents and business agreements - Make sure your business and personal documents sync up with your wishes. This will keep your plans watertight against potential disputes from stakeholders.

What Happens If Something Changes In My Personal Circumstances?

It’s inevitable that something will change before you retire or step away from your business. Whether it’s changes within the family, external factors such as financial or tax changes, or changes to your business, it’s vital that you continue to update your plan to reflect your current circumstances. Creating a flexible plan that can adapt to changes will always save stress and paperwork later.

How Can I Make The Most Of Tax Reliefs?

If you’re approaching retirement, it’s advisable to take tax advice to ensure your protecting your personal assets along with your business. When it comes to tax reliefs, opportunities are there if they’re proactively sought out and carried out in a coordinated way.

A few tax implications to consider when retiring:

• Keep an eye on the annual budget, in some cases this can change your tax position, so it’s important to take advice if you think it will affect you
• Consider transferring business assets, if done correctly this can be more tax efficient
• Incentives and tax reliefs can help mitigate the tax burden for you, your business, and any potential investors.

What Are Key Pieces Of Advice For Business Owners Looking To Step Back Or Retire?

The key to a good plan is always communication, make sure that everybody involved is made aware of your retirement plans, especially if you’re planning on passing your business on to the next generation. In doing this you can make sure people are on board and involved in the planning process to avoid disputes further down the line.

And finally, to make sure your plans are watertight against potently disputes, ensure that your business and personal documents sync up with each other and your wishes. Having a holistic and flexible plan will result in a smooth journey to retirement.

Summary

Our friendly and approachable team can offer support and clear guidance, advising you on what action to take to ensure your wishes are followed and your best interests are looked after. We're one of the UK’s leading law firms, and our specialist teams located across multiple offices has extensive experience with legacy planning and supporting your business.

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Contact us today for help and advice on planning for retirement. You can call us on 0808 250 7258 or contact us online.

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