Pension & Retirement
Case Study 2: High Net Worth Pension Tax Relief Maximisation
Home Case Studies Pension & Retirement 2
Case Study 2: High Net Worth Pension Tax Relief Maximisation
Mr C is a director in a Ltd company and draws income from the business in a tax-efficient manner through salary and dividends.
After a very profitable business year, Mr C had residual funds in the business account and wanted to invest £40,000 into a pension to save tax for the current financial year.
By making a contribution directly as an employer pension payment from the company bank account, the contribution would be deductible against company profits, saving Corporation Tax at the prevailing rate for the business. This was far more beneficial than drawing income personally first.
Because Mr C was a higher-rate taxpayer, this allowed him to save a substantial sum compared to taking dividends or salary, sheltering his wealth inside a tax-free growing pension wrapper.
Mr C was delighted with the service provided and felt that he had received clear advice and achieved a high level of tax efficiency for his company and personal retirement fund.
Extract business profits tax-efficiently. Contact David Vance for tailored employer contribution guidance.
Speak to an Advisor