Case Study – Pete

Case Study – Pete

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Clients

Pete* is a successful Business Owner and Property Investor

Primary Goal

Building wealth outside of his business.

Clients Background

Pete was introduced to me to start a pension as he was becoming increasingly concerned about the taxation of his large property portfolio. Although he had done very well for himself, there was no over-riding strategy, creating a much larger tax bill than was needed. In turn, this only allowed him to make £10,000 pension contributions from his business.

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How Did We Help

Our first step was to set up a pension from his business, allowing him to make pension contributions which reduced his corporation tax bill. However, to fully maximise the situation we needed to restructure his overall assets to ensure they were optimised for him.

His large portfolio of properties was incorporated over several years. This was facilitated by introducing Pete to other professionals within our network, such as accountants and solicitors, to combine a joint approach to what he needed.

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Support Outcome

As a result we have saved Pete in the region of £50,000 personal income tax per year. His personal tax also fell from a marginal rate of 38% down to 7.5%.

Furthermore, it has increased his pension allowance to £40,000, allowing an additional £30,000 per annum of profits to be extracted in the most tax efficient way from his business.

We now have an overall, long-term strategy where we fund pensions and investments monthly, (£6k tax free savings per month) in addition to the property business and his main business further making him independently wealthy from his business.

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*name changed to respect confidentiality

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