Background

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

1. Carried out a comprehensive review of his existing tax & financial arrangements
2. Provided an impartial second opinion on the financial decisions he had already taken
3. Re-arranged Company shareholding to include family members & senior management
4. Reviewed & adjusted the method of remuneration – striking the balance between Salary, Dividend & Bonus
5. Established tax efficient structures for the removal of previously tax paid Company profits
6. 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.