How we saved a Weybridge company director £19,400 on profit extraction and pensions
Client B owns a successful Weybridge-based trading company with substantial retained profits and a high income. He'd been drawing high dividends with no broader strategy, no pension provision, and no thought given to extracting the retained reserves efficiently or to inheritance tax planning.
We built a combined extraction and planning strategy. We set up substantial employer pension contributions (tax-deductible for the company, using carry-forward of unused allowance, and sitting outside the estate for IHT), restructured the salary/dividend mix efficiently, reviewed Business Property Relief on the trading company shares, and modelled a future Members' Voluntary Liquidation to extract the reserves at the 10% capital rate on eventual retirement.