Services for Businesses
The following is a Case Study of how we helped a business owner couple retire early with the maximum pension available and miminal tax liabilities.
Background
- Mr & Mrs Blair
- Married with 4 Children
- Small Business Owners
- Assets: Home - £300K; Other Property - £800K; Business - £1.3M; Pension Funds - £300K
- Available funds: Cash - £1.6M; Investments - £500K; Self Emp Income - £500K pa; Investment Income - £80K pa
The Challenges
- Early Retirement: Mr & Mrs Blair recognised they had inadequate pension funds
- Income Tax: they were concerned by the level of income tax they were paying
- Inheritance Tax Liability: poorly structured investments were both clients to die
- Capital Gains Tax: failure to take advantage of annual allowances
What We Did
- Sold the Unit trust Portfolio of £260K over two separate tax years.
- Invested the £260K proceeds equally between the two existing personal pensions.
- Set up Discretionary Trusts for the personal pensions.
- Reinvested £1.2M cash in Offshore Investment Bond
The Results
- Increased combined value of pension funds from £300K to £625K
- Reduced Income Tax bill by £110K
- Reduced Inheritance Tax Liability by £250K
- Saved approximately £8K Capital Gains Tax
- Client now controls if and when to pay Income Tax on Offshore Bond gains
If you would like us to help you with your own financial situation please contact us now.