The purpose of this thesis was to study different alternatives to implement a change of generation in a limited company. The goal of the thesis was to find out the best way to carry out a succession in a case company. The main focus of this study was on tax planning from both the successor’s and the enterpreneurs’s perspective.

The theoretical part of the study consists of different ways to how to carry out a succession in a limited company and their tax effects. This thesis examined a sale at a valid price, a gift-like sale, a gift and an inheritance as ways of transferring the possession of the company. Defining the current value of a company was also researched. The method that was used in the study was qualitative.

The results showed that it would be the most tax efficient for Limited Company X to implement the succession as a gift-like sale at 51 percent of the current value. The results also showed that tax reliefs have a substantial impact on the taxation. This thesis will be used as guidance how to carry out a succession in a case company. Possible subject for further research could be company reorganization before the change of generation.