Tax Planning With A Group Structure

There are many risks involved with having substantial assets such as property held inside a company. I recommend separating them out into a group structure and protecting them from any liabilities in the business ...

Business owners need to be aware of these risks and understand the benefits of doing things in a different way. There is no 'one size fits all' solution, so it's always a great idea to get advice from a specialist tax advisor such as myself.

But at the heart of my advice, I'll usually recommend a group structure. Some of the advantages are:

Protection of valuable assets via a legal separation of the trading business and assets such as property to protect against uninsured liabilities or a downturn in trade.
Assets are able to be moved between companies within the group without any tax liability.
Centralised management of the group allowing you to monitor the risks and growth levels of each part.
In future, you may want to sell one part of the group of companies, but not others so early separation and good planning makes this far easier.
A group structure can also help with succession planning allowing you to pass your business down to future generations.

Other opportunities you can look at with a group structure would be corporate pension contributions, dividend extraction, key employ rewards and debentures.

You do have to follow the rules though, and this is where good tax advice is needed. I'd also recommend applying to HMRC to be sure they are happy with the new group structure because you don't want to move things around and find you then have a Capital Gains Tax liability to pay.

There are also anti-avoidance rules (called 'transaction in securities') that need to be navigated to ensure you don't have any additional income tax liabilities due to the structural changes of your business.

If you'd like to find out more about a group structure for your business, and discover how it could protect your valuable assets, do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.

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More about Helen Beaumont ...

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.

Tax Planning With A Group Structure

A great way to protect your valuable assets ...