Corporate business property relief – James and Ellen

Background

James and Ellen are directors of a successful company and have significant personal assets.

They didn’t want to take any more income as they didn’t want to become additional rate tax payers and lose their annual allowance. However, cash was starting to build up in the company and forecasts showed that this was likely to continue. They were also already maximising their pension contributions.

They faced a choice: either take more money from the company, causing a reduction in their annual allowance and thereby forcing them to lower their pension contributions whilst significantly increasing their tax bill, or risk losing the company’s trading status and the ability to control their income and tax, as well as the likelihood of losing Inheritance Tax (IHT) benefits associated with a trading business.

What did we do?

We had a lengthy discussion with James and Ellen about their circumstances, objectives and their willingness to take risk. We talked through the options available and agreed that their main aims were to keep control of their income and tax whilst still funding their pensions.

We then researched the market and found a non-UCIS Business Property Relief (BPR) based investment. We invested £200,000 in this, thereby significantly reducing the cash holdings of their company.

The results

James and Ellen can now continue to fund their pensions whilst benefiting from the Inheritance Tax reliefs available to them. They are also now confident that HMRC will not challenge the trading status of their company allowing them to keep control of their income and tax liabilities.

What do our clients have to say?

I have been a client of Taylor McGill Financial Services since 2014. At that time, I had a number of annuity style pensions, both private and company, which I wanted to transfer into a single drawdown facility. Daniel contacted the trustees of the funds to expedite a speedy and cost-effective reassignment and professionally dealt with the significant red tape required to do so very effectively. Since then I have retired and have found Daniel is always very prompt and attentive when I require funds. I find our regular meetings very informative, both in terms of aligning my drawdowns to my specific requirements but also in terms of understanding tax-efficient vehicles for future investments. All in all, I have found Taylor McGill and Daniel Taylor in particular, very professional and easy to work with. I am very happy to be their customer. Sean, Ravenshead A client since 2013
On my retirement, over ten years ago, my lump sum was invested in a low-risk portfolio which had been making satisfactory gains but was not actively managed. I have no aptitude for picking stocks and shares, but I need to feel that the right decisions are being made in regard to the placing of my financial resources. Recently I became the beneficiary of a bequest in the form of a percentage of a pension pot. I had no idea as to how to proceed with this sum and the legalities which attached to it. Daniel Taylor of Taylor McGill provided all the information I needed to make choices and guided me through the steps needed for the transfer of funds, taking note of my attitude to risk. Also, at my request, he examined my original portfolio and made sure that it will be held in a tax-free ISA. Throughout these meetings, he had relevant information at his fingertips and was able to answer my queries, either then or later, online. I am very satisfied with the service I received. Barbara, Suffolk A client since 2017
We have been using Taylor McGill as our financial advisers for approximately thirty years. Originally it was Simon who provided the advice, and latterly his son Daniel has taken over our portfolio. We have sought advice on pensions, ISAs and other financial transactions. We have always been more than satisfied with the advice received and have recommended them to several of our friends and colleagues. Being a small, family firm, we are seen by the same person each time, whether this be for our annual review or on any occasion when a need or query has arisen. We know the partners very well and we’re very grateful that we do not have to endure constant changes in personnel. They are always readily available, and we like the personal touch. Terence and Mollie, Nottinghamshire A client since 1991
I have been trading with Taylor McGill since the mid-1980s and continue to be very comfortable with their business attitude and product recommendations. Initially they took great care and time to understand our business, its structure and needs. Not only do I get first-class service from Taylor McGill, but over the years they have constantly monitored (and moved, if necessary) my investments and pensions as new legislation requires in an ever-changing market place. Steve, Leicestershire A client since 1991

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