Our client Alan was 48 years old when we were first introduced to him by his Accountant. He was the major shareholder of a successful engineering firm which he had run for over 15 years & earned a good living from his endeavours. Whilst the early years of the business were somewhat of a struggle he was now in the fortunate position of have accumulated significant cash reserves in the Company. However he still had some financial frustrations & concerns.....
Client Concerns & Immediate Issues
- Substantial Company Reserves & Cash at Bank
- Would like the Company money in his personal Bank account
- How could this capital be efficiently ‘released’ into his hands
- Lack of information & guidance from his Accountants – no ‘pro-active’ advice
- With retirement around the corner how best to ‘exit’ from his business
Our Initial Recommendations & Actions
- Carried out a comprehensive review of his existing tax & financial arrangements
- Provided an impartial second opinion on the financial decisions he had already taken
- Re-arranged Company shareholding to include family members & senior management
- Reviewed & adjusted the method of remuneration – striking the balance between Salary, Dividend & Bonus
- Established tax efficient structures for the removal of previously tax paid Company profits
- Holborn sought specific guidance from Tax, Legal & Accounting specialists (which included his previously ‘out-of-favour’ Accountants) & co-ordinated the advice available
The Results so far
- Removal of over £800,000 worth of Company reserves into the hands of our client & his family – with NO 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 construed as financial or investment advice.