The directors trust,the money farm,EFRBS,profit retention,tax planning,corporation tax planning,IHT advice,how to reduce tax,corporate tax reduction,business planning,financial planning,financial advice,finances,UK income tax,tax strategy
The directors trust,the money farm,EFRBS,profit retention,tax planning,corporation tax planning,IHT advice,how to reduce tax,corporate tax reduction,business planning,financial planning,financial advice,finances,UK income tax,tax strategy
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Proud sponsors of
Sound Financial Planning
"The Money Farm is a leading profit
extraction consultancy"
extraction consultancy"
Who will manage the funds?
The Money Farm will set up a bank account for the EFRBS and the member will be a signatory on his own
trust account. The account will be with Barclays Bank , no matter what the balance, will attract interest at a rate of 0.5% below Bank base rate. There are no investment restrictions imposed on the trustees of EFRBS and therefore the member has complete control over the investment decisions whether this be residential property to let or the appointment of professional investment advisors.
What can I do with the funds I may borrow from the EFRBS?
You can use the money for whatever you like and do not forget there will be more money available to you compared to taking a bonus or a dividend. As mentioned above, replacing a third party mortgage is popular. Even though you have to pay interest to the EFRBS you are effectively paying interest to yourself and after paying 40% tax you keep 60%. A loan from your own EFRBS at, say 5.5% on £100,000 could cost your overall wealth as little as £183.33 per month. Alternatively, or as well, the funds could be used to support children through education or at the opposite end of the ages, nursing home care for parents.
Can I take an interest free loan?
No. Any loan must be at an arms length interest rate. This would match the cheapest on the
market and you are paying interest to your own EFRBS.
Under recent disclosure regulations is an EFRBS a reportable strategy?
The regulations on reporting schemes that may save tax specifically exempt ‘approved’ pension
schemes which includes EFRBS so the answer is no.
The Money Farm will set up a bank account for the EFRBS and the member will be a signatory on his own
trust account. The account will be with Barclays Bank , no matter what the balance, will attract interest at a rate of 0.5% below Bank base rate. There are no investment restrictions imposed on the trustees of EFRBS and therefore the member has complete control over the investment decisions whether this be residential property to let or the appointment of professional investment advisors.
What can I do with the funds I may borrow from the EFRBS?
You can use the money for whatever you like and do not forget there will be more money available to you compared to taking a bonus or a dividend. As mentioned above, replacing a third party mortgage is popular. Even though you have to pay interest to the EFRBS you are effectively paying interest to yourself and after paying 40% tax you keep 60%. A loan from your own EFRBS at, say 5.5% on £100,000 could cost your overall wealth as little as £183.33 per month. Alternatively, or as well, the funds could be used to support children through education or at the opposite end of the ages, nursing home care for parents.
Can I take an interest free loan?
No. Any loan must be at an arms length interest rate. This would match the cheapest on the
market and you are paying interest to your own EFRBS.
Under recent disclosure regulations is an EFRBS a reportable strategy?
The regulations on reporting schemes that may save tax specifically exempt ‘approved’ pension
schemes which includes EFRBS so the answer is no.