Corporate Estate Planning

A build-up of surplus cash inside a trading company can quietly erode the inheritance tax relief its shares would otherwise enjoy. We help business owners put that cash back to work — and protect their Business Relief.

50%+

Trading threshold a company must maintain

100%

Potential Business Relief on qualifying shares

2 years

Ownership period required for relief

Bespoke

Structured around each company

The problem — and the solution

Shares in an unquoted trading company generally qualify for 100% Business Relief, meaning they can pass on death free of inheritance tax. But HMRC applies a "wholly or mainly" test: the company must be more than 50% trading, judged across its activities, assets and income.

Cash that has accumulated beyond the needs of the business can count against that test — and even where the company still qualifies overall, surplus cash may be treated as an "excepted asset" and lose its share of the relief. For illustration: a company that is fully trading may attract 100% relief, while one where a fifth of its value sits in surplus cash could see relief restricted to roughly 80%.

Our corporate service deploys surplus cash into qualifying trading activities — such as asset-backed lending — so it works harder for the company and supports, rather than undermines, the shareholders' Business Relief position.

Protects your relief

Redeploying surplus cash into trading activity helps the company stay on the right side of the wholly-or-mainly test.

Earns a return

Cash that was idling on deposit is put to work in conservative, asset-backed trading strategies.

Stays accessible

Structures are designed so funds can be drawn back into the business when working capital is needed.

Key risks

Capital deployed is at risk and returns are not guaranteed.
HMRC assesses Business Relief on the facts at the date of death; no advance guarantee is possible and rules may change.
Whether particular activities qualify as trading depends on individual circumstances — specialist tax advice is essential.

Charges

Structure: Agreed per engagement
Annual management charge: By agreement
Initial advice: Via your professional advisers
Exit costs: None from Royal Crest

Full details are set out in the brochure, terms & conditions and key information documents, available from the team on request.

Frequently asked questions

Which companies does this suit?

Established trading companies that have accumulated more cash than the business needs, and whose owners expect their shares to qualify for Business Relief.

Does holding cash always cause a problem?

No — cash genuinely required for working capital or committed plans is normally fine. The risk arises from surplus cash held with no identifiable business purpose.

What do you actually do with the cash?

It is deployed into qualifying trading activity, typically conservative asset-backed lending strategies managed by our team, structured to remain accessible to the business.

Do I still need my own advisers?

Yes. We work alongside your accountant and tax adviser — the analysis of your company's trading status should always be theirs.