Dear Vicki: Given how much tax they’d pay, should I sell my business and let my children start again?

There was no shortage of family ambition in 'Succession'. Photo: HBO

Vicki O'Toole

​Q: As I come towards the end of my business career, I am actively considering whether to pass my small business on to one of my children. The tax they would have to pay seems punitive, and I’m wondering if it would not be a better strategy for me to sell the business and let them start their own from scratch. Would that be ­financially more prudent, Vicki?​

A: Given the considerable taxes associated with business transactions, from capital gains tax and capital acquisitions tax to stamp duty, meticulous planning is definitely needed whether you decide to sell the company or pass the baton on to the next generation.