Shareholding Protection

We are specialist advisors and can help you if you are considering shareholding protection and the right shareholding solution for your business.

How can we help?

Our committed team of financial advisors will complete a full business assessment, including business health checks and reviews. We are dedicated to ensuring that the best shareholder protection plan is implanted for your business and that the right solution is put forward in the event of a worst-case scenario.

What is shareholding protection?

Shareholding protection can provide your business with a safety net if it was ever to lose a shareholder through serious illness, injury, or death. Shareholder protection reduces disruptions at a challenging time by making the transfers of shares an orderly process.

Why have shareholding protection?

A shareholder protection plan can allow the remaining shareholders to acquire financial help to buy the critically ill or deceased owners’ share of the business. It can also provide the option for the deceased owner’s dependents to have a willing buyer and receive other monetary alternatives instead of a share of the business.

How does shareholding protection work?

In order to be eligible for shareholder protection policies, the terminally ill shareholder must have a life expectancy of 12 months or less to be eligible for shareholder protection policies, and their illness needs to be named on your provider’s specified list of ‘critical’ illnesses.

Shareholder protection premiums are paid by the business and are treated as taxable income for each shareholder and therefore be reported to HMRC. Premiums always reflect the age and sums assured of each individual shareholder, there the amounts paid do not reflect the payment each individual may receive in the event of a claim.

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