Tips for Ultimate Tax Efficiency This Financial Awareness Day
Staying up to date with new ways of decreasing Corporation Tax, protecting your family from Inheritance Tax, and putting innovative strategies in place, ensures you can mitigate tax effectively whilst continuing to grow your company and wealth.
Whilst traditional accountants and financial advisers may be able to provide sound financial advice, they may not necessarily have the specialist knowledge required to achieve ultimate tax efficiency.
Legacy Planning
One of the cornerstones of financial planning is preparing for succession and retirement.
With uncertainties surrounding the economic climate, investments, tax changes and pension benefits it has become imperative to start building the pot for retirement as early as possible to secure not only your future, but your family’s as well.
In addition to preparing for retirement, succession planning for leaving your wealth, assets and business to family without inheritance tax is just as important.
Did you know that as a company director, you can access your pensions funds, even before aged 55, via a Small Self-Administered Scheme (SSAS)?
Having a SSAS means you have flexibility and control over your own pension funds and can use them to further grow your wealth and protect your family from having to 40% inheritance tax in the future.
Unlike traditional pensions, a SSAS permits you to use the funds to invest in a more diverse range of assets, including investing in property, or loaning funds to your company. You can combine all your funds into one pot and even pool pension funds with company or family members to increase investment power and reach.
Investments are held in a tax-efficient wrapper, allowing you to continue building your pension without extensive tax penalties and protected from creditors.
You can read more about the extensive benefits of the SSAS pension in detail here.
Investing
As a company director, you have a more diverse set of options when it comes to investing and growing your wealth. In the previous section, we introduced the SSAS pension, which enables you to access funds for investing in property or other assets.
To further enhance your tax position (amongst other benefits), the SSAS can be combined with a Family Investment Company (FIC), creating what we call a Lifetime Business Tax Plan.
The FIC is another innovative plan which presents a robust long-term method of holding property investments and facilitates a smoother process for passing it on to the next generation without the worry of Inheritance Tax.
Another benefit of a FIC is that it allows you to reduce your Corporation Tax to as little as 0%, which frees up more funds for you to increase your growing investment portfolio.
You can read in detail about the unique attributes of a Family Investment Company here.
As mentioned, these powerful products can be used individually, or to create even more formidable strategies, together as a Lifetime Business Tax Plan
You can read more about the Lifetime Business Tax Plan here.
Get in Touch
Financial Awareness Day is the perfect occasion to seek professional, specialist advice on how to mitigate tax whilst growing your business and investment opportunities.
Get in touch with an experienced consultant at TLPI today for a free consultation and find out if a SSAS Pension, Family Investment Company or a Lifetime Business Tax Plan could help you further grow and protect your wealth.
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