Our client was 49 years old last year. He was the major shareholder of a successful firm, which he had run for over 15 years & earned a good living. Whilst the early years of the business were a struggle financially, he was now in the fortunate position of have accumulated significant cash reserves in the Company.
Client Concerns & Immediate Issues
- Substantial Cash in company bank account
- Would like to get company money out of the business
- With imminent retirement how best to ‘exit’ from the business
Our Initial Recommendations & Actions
- Carried out a review of his existing tax & financial arrangements
- Changed the Company shareholding to include family members & senior management
- Reviewed and recommending adjusting the method of remuneration – striking the balance between Salary, Dividend & Pension
- We received guidance from Tax, Legal & Accounting specialists regarding the potential loss of Entrepreneurs relief & co-ordinated the advice available
The Results so far
- Removal of over £300,000 worth of Company reserves into the hands of our client & his family – with no immediate liability to tax
- Peace of mind – the capital is now in his hands; it is also sheltered from Inheritance Tax, Capital Gains Tax & protected from possible Company creditors
- Greater choice – the actions have enabled him to get one step closer to securing sufficient funds upon which he can retire – should he so wish.
Please Note: This document is provided as a working example and for information purposes only this should not be taken as financial or investment advice.