Profit extraction
Careful consideration here can yield cost savings and cash flow advantages. Even relatively simple changes can significantly enhance a company's position. We can provide advice on a range of options including:
- methods of cash extraction
- use of allowances within a family
- use of tax efficient benefits
- contributions to pension schemes
- use of an Employee Benefit Trust (EBT)
- rent on personally owned property
- purchase of own shares
- other relevant arrangements.
Pension planning
The rules around pension contributions are currently changing and require care to avoid tax charges. Our expert team fully understands the impact of this complex legislation and advises on its impact on your business, so that contributions may be arranged in a tax effective way.
Planning around families
Many families don't take full advantage of the tax reliefs available to each member. It is not, however, as simple as transferring income to spouses and other relatives and careful thought needs to be given to how HMRC may view such arrangements.
Our experienced team has years of experience and are fully aware of the planning opportunities and pitfalls. We also work with you to balance tax savings with the demands of particular familial relationships. |
| Personal property
Transferring property into or out of companies can be a tax effective way of extracting cash from the business. However, before such planning is undertaken, other non – tax issues, such as the requirements of investors and the need to manage risk, should be considered. We can provide clear advice and implement relevant solutions.
Purchase of own shares
In certain circumstances, a purchase of own shares can provide a tax effective way of extracting money from a company as well as providing an exit route for shareholders. We have a wealth of experience in this area and will work with you to obtain the best possible result, whilst managing risk.
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