Business Financial & Tax Planning

Initial Situation

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• Company Director

• 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

• Reviewed all pensions, proceeding to consolidation exercise to meet retirement objectives

• The life cover was able to be transferred into the Director's personal name when she retired from the company

• Cash Flow Modelling demonstrated that early retirement at her current lifestyle and expenditure was possible

• 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

• Businesses can use their pensions to fund business expansion or property purchase but this needs careful consideration and planning