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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Sound Financial Planning
"The Money Farm is a leading profit
extraction consultancy"
extraction consultancy"
How do I own two companies and save corporation tax?
You can move profits from your original company into an EFRBS in a very tax efficient way. A second company can then be set up by the trustees within the EFRBS and providing certain conditions are met the companies will not be treated as associated companies for corporation tax purposes. Hence each company can earn profits of up to £300,000 at the lowest rate of only 20% tax. If both companies were owned personally each would be able to earn only£150,000 each before higher rates of tax apply being just over 30%.
Can I get my money out and close the EFRBS?
If, under current rules, you are over the age of 50 a member may take the entire fund but it will be subject to income tax. Before this age, it is subject to the agreement of the HMRC and if given will be subject to income tax. The question must be why would any member wish to give up the benefits of an EFRBS?
You can move profits from your original company into an EFRBS in a very tax efficient way. A second company can then be set up by the trustees within the EFRBS and providing certain conditions are met the companies will not be treated as associated companies for corporation tax purposes. Hence each company can earn profits of up to £300,000 at the lowest rate of only 20% tax. If both companies were owned personally each would be able to earn only£150,000 each before higher rates of tax apply being just over 30%.
Can I get my money out and close the EFRBS?
If, under current rules, you are over the age of 50 a member may take the entire fund but it will be subject to income tax. Before this age, it is subject to the agreement of the HMRC and if given will be subject to income tax. The question must be why would any member wish to give up the benefits of an EFRBS?
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Please visit our case studies to see how you can have a £100,000 mortgage at £183,00 per month
and we will publish it here.
Please visit our case studies to see how you can have a £100,000 mortgage at £183,00 per month