Background
• Mr Client aged 46 – Mrs Client aged 45
• Two children aged 14 and 11
• CEO wholesale banking business
• Income £250,000 pa + bonus of 100% of basic
Home
£2.5m |
Cash
£400k |
Pension
£400k |
Shares
£600k |
Shares in Private Co.
£2m |
Debt £300K
Challenges
1. Time Poor
Mr Client realised his affairs required greater attention than he had time to
give them.
2. Sale Of Private Company Shares
Mr Client wanted to sell the shares but was aware of the £200,000 Capital Gains
Tax (CGT) liability that would crystallise if he did so.
3. Pension Concerns
The client had learned that he may pay a 55% penalty tax on the benefits in his
Private Pension over £1.5M.
4. IHT & Estate Planning
The client had no Will and and IHT liability of £2M sitting in his future
estate.
What We Did
1. We implemented a tax effective Will and Discretionary Will Trusts saving
£110,000 of IHT immediately and creating certainty for his wife and children.
2. Established a tax effective insurance programme that provided fully for the
remainder of the IHT liability.
3. Re-structured the clients mortgage saving £13,500 in annual repayments whilst
retaining flexibility for a future land purchase.
4. Simplified and consolidated seven pensions into one place making it easier to
understand and manage.
5. Reviewed the clients investment strategy increasing his risk profile and
improving performance. We also created a single structure that could hold his
shares and other self-directed investments in the same reporting platform as the
pensions (a one-stop facility)
6. Used tax effective investments to save the client £40,000 of income tax.
7. Referred the client to a CGT expert significantly reducing his liability.
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