1. First step taken to tighten up business succession scheme (BOR)
The aim of the business succession scheme (BOR) and transfer facility (DSR) is to remove, as far as possible, the obstacles presented by the normal (high) level of taxation that applies to a business succession. You can therefore pass on the baton to the next generation with a fiscal incentive. The BOR thus plays an important role in the transfer of family companies. Considerable attention has been paid to the BOR and the rationale behind, resulting in an announcement that the scheme is being tightened up.
From 1 January 2024 property that is being rented out will no longer be classified as business assets, but will fall under investment assets. It will then no longer be possible to gift such property under the BOR.
- The above change will also affect the level of business assets when applying the transfer facility in the area of income tax. This means that the person making the gift will no longer be able to transfer the corresponding portion of the box 2 tax claim that applies to the shares.
- Further measures to tighten the rules have been announced for 2025 and 2026, such as the abolition of the efficiency margin that allows 5% of business assets to consist of investments.