How we saved a Gerrards Cross company director £18,600 on profit extraction and pensions
Client B owns a successful Gerrards Cross-based trading company with substantial retained profits and a high income, with a high-earning spouse. He'd been drawing high dividends with no broader strategy, no pension provision, and the couple's overall position hadn't been planned together or with any thought to inheritance tax.
We built a combined household and extraction strategy. We set up substantial employer pension contributions (tax-deductible, using carry-forward, and outside the estate for IHT), restructured the salary/dividend mix efficiently, coordinated the couple's allowances and pension contributions to manage their combined additional-rate exposure, reviewed Business Property Relief on the company shares, and modelled a future Members' Voluntary Liquidation for the reserves.