Business succession planning solicitors in Scotland

Why a succession plan matters for business owners

Many business owners put off succession planning because it feels distant or difficult to discuss. Yet without a plan, the death, illness or retirement of a key owner can leave a business without leadership, cause disputes between family members and co-owners, and create an avoidable tax bill. Lenders, customers and staff also want to know the business has a secure future.

Effective succession planning brings together company law, partnership law, wills, trusts and tax. Our business lawyers in Glasgow work with your accountant, your financial adviser and, where needed, wills and estate planning specialists, to draft a joined-up plan, and to review it as your business and family circumstances change. Whether you are a professional practice, farmer, retailer or manufacturer, the right succession plan gives you peace of mind that your business, and your estate, will pass in the way you intend. We act for business owners throughout Scotland, from Glasgow to Edinburgh and beyond, and your lawyer will make sure each part of the plan fits together.

Succession planning for a family business

Family businesses face particular challenges. Some family members work in the business and others do not. Some want to stay involved, while others want to realise the value of their share. A good plan for a family business usually considers:

• Who will run the businessIdentifying and developing the next generation of leaders, whether from within the family or outside it.
• Who will own the businessHow shares or partnership interests will pass, and whether ownership and control should be separated.
• Fairness between family membersBalancing the interests of children who work in the business with those who do not.
• Retirement fundingHow the outgoing generation will be paid, for example through a phased sale of shares or a company purchase of its own shares.
• Family governanceAgreed rules on decision making, dividends and family employment, sometimes set out in a family charter.

Wills, powers of attorney and other documents in a succession plan

• Shareholders’ or partnership agreementRules on what happens to an owner’s shares or partnership interest on death, incapacity, retirement or leaving, including pre-emption rights and valuation.
• Articles of associationTailored articles that work alongside the shareholders’ agreement and control who can hold shares.
• Cross-option agreementsAgreements, often funded by life insurance, allowing surviving owners to buy a deceased owner’s shares and the family to sell them.
• WillsA will that deals properly with your business interests, so that shares pass to the right people and valuable tax reliefs are not wasted.
• Continuing power of attorneyAppointing someone you trust to deal with your shares and finances if you lose capacity. In Scotland, it must be registered with the Office of the Public Guardian before it can be used.
• TrustsHolding shares for younger or future generations while keeping control with experienced trustees.

Scots succession law, your will and your estate

Scots law gives a surviving spouse or civil partner and children a right to claim legal rights from the moveable estate of a person who dies, whatever the will says. Shares in a company are moveable property. That means legal rights claims can affect who receives the value of a business, and can create pressure to sell shares to pay a claim. If someone dies without a will, the intestacy rules decide who inherits, which may not match their wishes. Careful planning, including a will that reflects your succession plan and the right shareholder agreement, can reduce these risks and make life easier for your executors.

Inheritance tax and tax planning for business succession

Succession planning should always take account of tax, and the rules changed significantly in April 2026. Business Property Relief and Agricultural Property Relief from inheritance tax now give 100% relief on up to £2.5 million of combined qualifying assets, with 50% relief above that. Any unused allowance can be transferred to a surviving spouse or civil partner. Shares on AIM and similar markets now receive 50% relief. Business Asset Disposal Relief on a sale of shares now gives a capital gains tax rate of 18%, up to a lifetime limit of £1 million.

We work with your accountant or tax adviser so that your plan makes the most of the reliefs available. Options for passing on a business include lifetime gifts of shares, a management buyout, a sale to an employee ownership trust or a third party sale. See our management buyouts and business sale pages for more on these routes.