Tax Planning Idea! Freezer Shares - Mitigating Inheritance Tax on future business growth

Freezer Shares - Mitigating Inheritance Tax on future business growth

It is sometimes possible to convert the existing share capital of a company into what are known as “freezer shares”. The current value of the business is ‘frozen’ into the existing shares and new “growth shares” shares are issued to capture any future growth in value of the company. Growth shares can then be passed into the ownership of other family members or trusts to remove the future value of these shares from the existing shareholders’ estates for IHT purposes.

As always, the key to successful tax planning is to seek advice as early as possible.

If you would like more information, or would like to discuss your tax affairs in more detail, please don't hesitate to contact our Tax Partners, Steve Crompton or Lucy Williams, on the details below: