One third of UK family business owners are unaware of their domestic exposure to capital gains tax (CGT) and inheritance tax, and two thirds aren’t aware of the international taxes they or their heirs might incur.
Based on interviews with more than 1,600 SME family-owned businesses in 35 countries, PwC’s family business survey, Kin in the Game, reveals that UK businesses are less well-prepared than many of their counterparts globally.
For instance, 91 per cent of Spanish firms, 85 per cent of Brazilian ones and around 73 per cent of those in Germany are aware of the domestic CGT implications for their firms.
But UK firms are better prepared than many other countries – for example, France and Denmark, where only around half of firms are aware of their CGT exposure.
Mary Monfries, tax partner at PwC, says the results are “concerning”.
“Tax charges incurred through capital gains or following the death of a member of a family business can be substantial and take money needed for investment in the business.”
How up to date are you with your CGT or inheritance tax exposure?
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