Case Studies

Company A

Retained an additional £595k from successfully restructuring their business prior to sale.

The director of this company had traded successfully for over 20 years and was looking for a retirement sale of about £4m.  The purchaser favoured an asset rather than share sale which left the client looking at a hefty tax bill in extracting his wealth from the company and he was facing a double tax charge.  A restructure of the business eliminated this problem and both he and his purchaser were happy with the result.  By sheltering this wealth effectively we reduced his overall costs and tax liability from the sale by 40%.  The additional benefit of the restructuring ensures that the client and his family will continue to enjoy increased annual income which projected over 10 years would increase his wealth by about £1.48m more than had he not taken any action.

Business B

Estimated savings £200k per annum and £2m of potential IHT liability.

A farming business whose successful diversification meant that the majority of their income was now derived from rental income rather than farming activities.  They were confronted with increased annual tax liabilities and a longer term succession problem in that their assets would no longer qualify for Business Property Relief or Agricultural Property Relief and they faced a significant potential IHT problem in the future. 

By successfully restructuring the ownership of their assets they have successfully removed the IHT problem and ensured that they can continue to benefit from their rental of the properties without a hefty tax burden.

Company C

The company was extremely profitable and had mitigated some of their tax liabilities by making substantial pension contributions and the owner Mr C was taking income in the form of dividends for himself and his wife.  The director expanded his operations and formed a new company with another individual focussing on the European market, at the time his new business partner was unable to take a shareholding due to personal circumstances.  This company was also very successful.

However Mr C was now faced with the following problems:

His pension fund was substantial but he was not old enough to receive any benefits and the fund was underperforming.

The dividends paid to his wife were deemed taxable on him and he was incensed with a huge tax liability

His business partner was now in a position to take ownership of his stake in the business but this would now result in a significant income tax liability.

Solution: by restructuring his business effectively all is problems were solved and his wealth was protected and maintained for the future.

Company D

The directors of this company were looking at selling their shares in their business.  By restructuring their shares prior to sale we helped them ensure that the annual income they earnt was increased by over 150%.

• New pension tax relief plans receive qualified support
  

  Government plans to simplify pensions tax relief have won qualified backing from the Chartered Institute of Taxation (CIOT).

  
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• Small businesses urged to comply with the law on pay
  

  Smaller firms are being encouraged to examine their pay systems to make sure they are not breaching the law on equal pay.

  
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