Client Story
How we saved a Chigwell business owner £22,000 on extracting profits and IHT planning
Client B owns a successful Chigwell-based trading group with substantial retained profits and a valuable home, and wanted to extract profit efficiently while starting to think about passing wealth to his children. He'd been drawing high dividends with no broader strategy and no inheritance tax planning.
We built a combined extraction and estate-planning strategy. We set up substantial employer pension contributions (tax-deductible, extracting profit efficiently and outside the estate for IHT), reviewed Business Property Relief on the trading company shares (usually 100%, so the business itself is largely IHT-free), and modelled gifting and a future Members' Voluntary Liquidation. We coordinated with his solicitor on the wider estate plan.
Total outcome: an estimated £22,000 annual saving versus continuing to draw high dividends, through pension contributions and a planned capital extraction route, plus an inheritance tax strategy using Business Property Relief, pension exclusion and staged gifting.