Case Studies

TrustEach client presents us with a unique set of circumstances so it’s impossible to replicate your situation in the case studies listed here.

However, these are actual scenarios where we have been able to diminish the tax liability of businesses and individuals and demonstrate our ability to improve your tax position. Some descriptive details have been changed to preserve client confidentiality.

Company A

This company was introduced to us by an accountant.  The business was owned jointly between husband and wife and was making healthy profits in excess of £300,000 per annum.  The Directors were concerned as to the amount of tax the company was paying on its profits and how best to extract cash from the business in the most tax efficient manner.

We recommended the rearrangement of the Directors remuneration and implemented some pension planning.  We introduced them to the concept of using  a certain type of trust as a vehicle to extract money from the company.  This resulted in a corporation tax reduction for the company.  Then money could be drawn down from the trust as and when required in a more tax efficient way.  The total tax saved, by the company and personally, was in excess of £180,000.

Company B

This company was introduced to us by a solicitor.  The client was about to sell his company and retire and was worried about Inheritance Tax (IHT).  On the sale of his business he would receive a cash sum which would then be classed as part of his estate.   This would result in a large amount of tax to be paid on his death.   He was reluctant to see such a large amount of his hard earned money going to HRMC instead of his children.

We recommended an investment to this client which qualified for business property relief.  He already owned shares in a company that qualified for business property relief, so the funds from the sale of the business (once invested) became protected from IHT.  He was able to draw an income from the investment in retirement whilst retaining access to the cash should he require it.  The potential IHT saving was just over £500,000.