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Online Business

Definition

An online business is a business that operates primarily through the internet, including e-commerce stores, digital services, content platforms, and web-based enterprises that generate income through online channels.

When you die, your online business becomes part of your estate just like a physical shop would, but it comes with unique challenges around digital access, credential security, and business continuity that require careful planning.

What Does Online Business Mean?

An online business is any business conducted primarily through the internet. This includes e-commerce stores selling physical or digital products, service-based businesses delivered online (like consulting or coaching), content creation platforms (YouTube channels, podcasts, blogs earning advertising revenue), software-as-a-service platforms, affiliate marketing websites, and online consulting services. Since the Property (Digital Assets etc) Bill 2024, English law explicitly recognises digital assets as property, giving online businesses clear legal status in estate planning. Under UK law, any ownership of a business—including online businesses—is included in your estate for inheritance tax purposes.

Online businesses comprise both tangible elements (revenue streams, customer relationships, contracts) and digital assets (domain names, websites, customer databases, intellectual property, payment processor accounts). Your will needs to address who inherits ownership, how they'll access the business accounts and platforms, and whether the business should be continued, sold, or closed. Sarah owns an e-commerce business selling handmade jewellery through Shopify, generating £60,000 annual profit. Her online business includes her website domain, product catalogue, customer email list (15,000 subscribers), Instagram account (25,000 followers), supplier relationships, and inventory management systems. Without proper planning in her will, her executor might struggle to access the Shopify account, renew the domain name, or communicate with customers—potentially destroying a valuable business within weeks.

Your online business may qualify for up to 100% Business Property Relief if it's an active trading business (not purely investment) and you've owned it for at least two years before death. E-commerce stores, online services, and digital product businesses typically qualify because they're trading businesses. However, websites earning purely passive income from property listings or pure investment platforms don't qualify. David's content platform generating £45,000 annually through YouTube advertising and brand partnerships qualifies for 100% Business Property Relief, potentially saving his beneficiaries £18,000 in inheritance tax. Your will should appoint a digital executor who understands online business operations, reference secure credential storage (using a password manager with emergency access), and provide clear succession instructions about whether beneficiaries should continue the business or sell it.

Common Questions

"What counts as an online business in my will?" An online business includes any business conducted primarily through the internet—e-commerce stores, digital services, affiliate websites, online consulting, subscription platforms, or content creation channels. Your will should address who inherits ownership, access credentials, digital assets (domain names, websites, customer databases), intellectual property, and any business-related financial accounts.

"Does my online business qualify for inheritance tax relief?" Your online business may qualify for up to 100% Business Property Relief if it's an active trading business (not purely investment) and you've owned it for at least two years before death. E-commerce stores, online services, and digital product businesses typically qualify, but buy-to-let websites or pure investment platforms don't. This relief can save your beneficiaries thousands in inheritance tax. Note that from April 2026, a £1 million combined allowance will apply, with 50% relief on qualifying business property above this threshold.

"Can I leave my online business to someone who isn't tech-savvy?" Yes, but you should plan carefully. Your will can appoint a digital executor who understands online business operations, include detailed succession instructions, and provide secure access to credentials through a password manager. Consider whether your beneficiary wants to run the business, sell it, or hire management. Many online business owners also create separate operating manuals outside the will.

Common Misconceptions

Myth: Online businesses aren't 'real' assets like property or shares—they're just websites that won't matter after I die.

Reality: Online businesses are legally recognised property under UK law and are included in your estate for inheritance tax purposes just like any other business. A profitable e-commerce store worth £200,000 or a content platform generating £40,000 annually are substantial assets that can provide financial security for beneficiaries—if properly planned for. Domain names alone can be worth thousands, and customer databases, intellectual property, and established revenue streams represent real economic value. However, unlike physical assets, online businesses can become worthless within weeks without proper access and management.

Myth: My executor or beneficiaries will automatically get access to my online business accounts—they're inheriting it, so platforms will just transfer access to them.

Reality: Online platforms typically lock accounts upon learning of the owner's death, requiring extensive documentation (death certificates, probate grants) before granting access—a process that can take months. During this time, domains can expire, subscriptions can lapse, customers can leave, and automated systems can break, potentially destroying business value. Most platforms have specific deceased account policies that don't automatically transfer access to executors or beneficiaries. Without proper planning—including documented credentials in a secure password manager, a designated digital executor, and clear instructions in your will—your profitable online business could become inaccessible and worthless.

  • Digital Assets: The broader category containing online business components like domains, websites, databases, and accounts that require specialized documentation and transfer planning.
  • Intellectual Property: Key components of online business value including brand names, logos, content, proprietary systems, and course materials that must be properly transferred in your will.
  • Domain Name: Critical digital asset within your online business representing your business identity and web address that requires renewal planning to prevent expiration after death.
  • Website: Core digital asset component of your online business requiring specific technical considerations about hosting, content management, and access transfer.
  • Business Assets: The broader category of business property (physical and digital) showing how online businesses fit into overall estate planning alongside traditional business assets.
  • Company Shares: Related ownership structure for online businesses operated as limited companies rather than sole traders, requiring coordination of share ownership with will-making.
  • Business Succession Planning: Essential companion planning addressing who will run the business and how operations will continue, separate from will provisions about ownership transfer.

Need Help with Your Will?

Understanding how to protect your online business in your will is essential for preserving the value you've built and ensuring your beneficiaries can access critical digital assets and revenue streams.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.