Succession planning has been thrust into the headlines again, with Rupert Murdoch’s billion-dollar family settlement making global news. Here, Andrew Diver, Head of Tax at Beatons Group, outlines why succession planning is just as relevant to local businesses as it is to global media empires.
The news this month could have come straight from the writers’ room of Succession.
Rupert Murdoch, the media mogul who built Fox News and News Corp into global giants, has finally settled the question of who takes the reins.
A $3.3bn (£2.4bn) deal will see three of his children receive $1.1bn each, while control of the businesses passes to his son Lachlan, secured through a new trust that cements his position until 2050.
At its core, it’s a story about more than just money. It’s about family dynamics, legacy, and the challenge of passing on something you’ve spent a lifetime building.
That theme is playing out much closer to home as well. I’ve been working closely with clients recently on how to pass property, pensions and businesses to the next generation in a tax-efficient manner.
With big changes to inheritance tax (IHT) on pensions due in April 2027, there’s increasing urgency too.
We are advising a client and their business on the use of trusts to protect wealth, thereby placing assets outside of any individual’s estate for Inheritance Tax purposes. Others prefer direct gifts and using these to make the rest of the family feel more part of the business from a young age and being involved in some of the challenging business decision-making processes.
We are also advising other owners who are planning succession arrangements with family members residing in different countries. What works in the UK doesn’t necessarily work under the tax rules of those other nations, and you can see how international succession quickly becomes a complex puzzle.
But it doesn’t always have to be so complicated.
Sometimes succession is about people, values, and making sure your family isn’t left with a tax headache when they should be celebrating your legacy.
That’s something I understand personally. My grandparents and uncle were farmers in Cambridgeshire, and I grew up surrounded by livestock and long days in the fields.
When I’ve spoken recently on the radio about potential cuts to Business Property Relief (BPR) for farmers, I’ve been reminded that succession planning isn’t just for billionaires in boardrooms – it’s for families in barns, shops, ports and offices across the UK.
For business owners – whether you run a farm, a shipping company or a professional services firm – the principle is the same. Don’t wait until death to transfer.
Think about succession planning early. Consider spreading that £1m of 100% relief across your children and grandchildren, and ensure your legacy is structured to work for your family, not against them.
The Murdoch story may have had all the glamour of global media and billion-dollar trusts. But at heart, it’s the same challenge faced by many readers: how do you pass on the business you’ve built, in a way that’s fair, tax-efficient, and true to your values?