This carefully constructed, all-in-one tool for business owners exclusively
The Family Investment Company
As part of a Lifetime Business Tax Plan, the Family Investment Company element enables company cash to be moved into the bank account linked to the plan. Shareholders of the original trading company (that may have inadvertently become an investment company) remain in full control of all the cash, but that cash is effectively held in trust for the benefit of their family.
This simple element of a Lifetime Business Tax Plan removes the tax charge in its entirety and allows the beneficiaries to receive the full cash balance. The cash can be invested within the plan, in any asset class from property to shares, and tax is only applied to the gains made through the investments, not the actual cash held. Most importantly, the grey area of whether the company has become an investment company or not is removed and BPR can be claimed on the company share value.
A Small Self-Administered Scheme (SSAS)
The SSAS is another essential business tool, exclusively available to company directors, and forms the second element of a Lifetime Business Tax Plan.
A SSAS is a form of tax exempt savings account, that can receive profits from a Family Investment Company, without suffering a tax charge. A SSAS can also make investments which are not subject to either capital gains tax or corporation tax.
A significant benefit of a SSAS is that it can receive your dormant, frozen or current pensions, which can then be invested in your trading company, property or other asset classes. Moreover, family members can also pool dormant or current pensions to increase the investment potential of the SSAS.
The key benefits of a SSAS
- No capital gains tax or corporation tax
- 0% tax on investment returns
- Invest historic or current pension plans in your own business
- Pool pensions with other company or family members to achieve greater investment power
- Invest in commercial property
- Purchase your own business premises
- Invest in property crowdfunding
- Ring-fence assets
- Create a more flexible retirement plan, to the benefit of your successors and beneficiaries
- Create a robust succession plan for the business
The fundamental premise of
a Lifetime Business Tax Plan…
…is to give company directors the control and the ability to protect their wealth for their family and put the mechanics of succession into place whilst continuing to grow their business. The strategies of a Lifetime Business Tax Plan focus specifically on overcoming the issues of investing company profits, mitigating company and inheritance tax, allowing company directors to invest at their own discretion and in addition, ensuring they are able to grow their pensions without the impact of huge tax penalties. By fusing the two key powerful components, a brige is created to allow innovative and formidable strategies to be created for you, the business and to provide a secure future your children, whatever the succession plan you have in mind for the business.
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