This article first appeared on the website of the Thought Leaders4 High Net Worth Litigation, Advisory & Divorce and is reproduced with its kind permission.
David Whittaker, Partner (Private Wealth & Tax), and Eve Drysdale, Associate (Corporate Tax) at Mishcon de Reya have written a piece exploring why a Personal Holding Company (PHC) could be a valuable addition to the wealth plans of founders, business owners, investors, and families looking ahead to succession and capital preservation. A PHC is a private company holding shares, investments, or other assets, that can be owned directly or via a trust, and need not be UK-based.
With changes to Business Property Relief (BPR) expected in April 2026, narrowing the scope of inheritance tax (IHT) reliefs, the article highlights the importance of acting now, not just for tax reasons, but to create structures that protect value, empower the next generation, and enable strategic reinvestment.
The article explains the benefits founders selling their company might face by transferring shares to a PHC and selling via the company and flags key risks and considerations, including HMRC scrutiny, administrative demands, and possible personal tax charges.
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