Business Financial & Tax Planning
Initial Situation
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Company Director
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Business was very successful and was therefore able to make lumpsum and regular contributions into her pension which can be offset against the corporation tax liability
Recommendation & Implementation
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Key person life assurance was paid by the Company and premiums are tax deductible
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Reviewed all pensions, proceeding to consolidation exercise to meet retirement objectives
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The life cover was able to be transferred into the Director's personal name when she retired from the company
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Cash Flow Modelling demonstrated that early retirement at her current lifestyle and expenditure was possible
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To date, it has still not been necessary to drawdown from her pension which has been managed in a tax efficient manner and on death would be IHT exempt as well
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Businesses can use their pensions to fund business expansion or property purchase but this needs careful consideration and planning