Logo linking to homepage
Mobile logo linking to homepage
About us
Our Partner Team
Client Care Charter
History of Scrutton Bland
Community Social Responsibility
Services
Accountancy Services
Audit
Cloud Based Accounting
Corporate Finance
Independent Financial Advice
Insurance
Internal Audit Services
Private Client Service
Systems Advisory Service
Tax Advice
Sectors
Agriculture
Charity and Not for Profit
Construction
Higher and Further Education
Land and Property
Leisure and Hospitality
Technology
Transport and Logistics
Careers
Current vacancies
Be part of our team
Benefits of working with us
News & Views
Events
Contact Us
Client Portal
Search
Accountancy Services
Audit
Cloud Based Accounting
Corporate Finance
Independent Financial Advice
Insurance
Internal Audit Services
Private Client Service
Systems Advisory Service
Tax Advice
Browse this section
Close menu
Accountancy Services
Audit
Cloud Based Accounting
Corporate Finance
Independent Financial Advice
Insurance
Internal Audit Services
Private Client Service
Systems Advisory Service
Tax Advice
Services
Insurance
Current:
Shareholder and partnership protection
Shareholder and partnership protection
If one of your business owners were to die or become terminally or critically ill,
Shareholder or Partnership Protection insurance could provide the remaining business owners with the capital required to buy that insured partner or shareholder’s interest in the business. Shareholder and Partnership Protection gives business owners the financial reassurance you need to keep your business on track during an unsettling period.
The loss of a business owner can quickly destabilise a business and may result in financial difficulties for the remaining shareholders or partners. Shareholder and Partnership Protection insurance ensures that the remaining partners or shareholders have the opportunity to stay in control of the business, following the death, terminal illness or critical illness of one of the business owners. What usually happens when a partner dies is the partnership is dissolved and the beneficiaries of the deceased are entitled to the value of the deceased’s interests in the business.
Another alternative is Company Share Buyback. If a company has the authority to ‘buy back’ shares from the shareholders, the company could take out insurance on the lives of those shareholders. The appropriate option agreement should be completed to ensure the share purchase takes place in the event of the death, terminal illness or critical illness of one of the owners. Your financial adviser will be able to give you more information.
Premiums for Shareholder and Partnership Protection may be treated as an expense and could be offset against Corporation Tax if it is the business who pays the premium. However, HMRC will treat premium payments as part of the shareholder’s gross salary and be subject to personal rates of tax and National Insurance.
Providing the Shareholder and Partnership Protection arrangement between owners is established on a commercial basis, HMRC will not treat the premiums paid as gifts or transfers of value for Inheritance Tax purposes. The share purchase will also be subject to Business Property Relief and the share value within the deceased’s estate, so that in most cases, it will not incur Inheritance Tax.
Arrange a Meeting
If you would like to find out more information about Shareholder and Partnership Protection or would like to speak to a member of the team please call Tim Bell on 0330 058 6559
Email Tim
Insurance for businesses
Business interruption
Business travel
Commercial combined
Crime
Cyber
Directors & officers
Employer's practices liability (EPL)
Group life assurance
Group income protection
Group private medical insurance
Key person assurance
Life assurance and critical illness cover
Motor fleet
Motor trade
Professional indemnity
Property owners
Public & product liability
Relevant life plan
Shareholder and partnership protection
Terrorism cover
Show all services for businesses
Related services for individuals
B&B and guest houses
Home and contents
Let and rented properties
Overseas holiday homes
Private Client Service
Private motor
Second homes
Travel insurance
Popular services
Accountancy
Financial Advice
Insurance
Tax Advice
About us
Our Partner Team
Client Care Charter
History of Scrutton Bland
Community Social Responsibility
Services
Accountancy Services
Audit
Cloud Based Accounting
Corporate Finance
Independent Financial Advice
Insurance
Internal Audit Services
Private Client Service
Systems Advisory Service
Tax Advice
Sectors
Agriculture
Charity and Not for Profit
Construction
Higher and Further Education
Land and Property
Leisure and Hospitality
Technology
Transport and Logistics
Careers
Current vacancies
Be part of our team
Benefits of working with us
News & Views
Events
Contact Us