Advanced Tax Planning
Even wealthy people, who believe they know all there is to know about wealth creation, protection
and tax planning…or employ good accountants to give them this guidance….actually know
dangerously little about the options available to them. This is usually because wealthy business
people and their families are “advised” by Accountants regarding all matters financial. However
Accountants have a VERY limited understanding of finance.
You would not, for example, ask an Accountant to advise on investing in the stock market, currency
markets, property, fine art, supercars, fine wine or any other financial product. The only thing the
Accountant can do is advise you of the “tax implications” of your investments, not whether the
investment portfolio or plan you put in place is the most profitable/safe for you.
An Accountant is like a computer, their output is only as good as the data put into them. Long before you get to the Accountant Stage you need to understand “how” to structure your finances, not just what you would pay in tax and whether there are little tweaks that can be made to be cost efficient with your tax bill. By changing the “way” you own and generate your wealth you change completely the tax payable, often quite dramatically.
The simplest way to explain this is to ask you this question, “How much tax might you pay on £1m if you “earned” it? Then compare this to “How much tax might you pay on £1m if you “controlled” it?”
You can still use this same £1m as you see fit but if you earn £1m you will pay various taxes such as Income Tax, NI and Dividend Tax. Who knows, maybe you will pay somewhere in the region of £100,000 - £300,000 in various taxes on it. However, what if you “earned” £0 but were still able to use the same £1m. The tax on £0 “earned” is £0!
To be clear, the aim is not to not pay tax, the aim is to change the way you own your wealth to protect you and your family from third party attack such as divorce and creditors; from Inheritance Tax and those people your kids marry who then might divorce them and take 50% of the wealth you gave to your children. Wealth that you did not intend for them to lose to someone they may only be married to for a few years….and so the list goes on.
The same could be said of any company you own. Times change, trading conditions fluctuate, pandemics come and go but one thing remains constant, you have Creditors who could enforce a Winding Up petition against you just at the worst possible time when you actually need breathing space. What if you could structure the funds your company generated so that they are held/owned elsewhere that does not have a direct trading relationship with the Creditors that could threaten you in difficult times. Then, that money is untouchable because you still “control” it but you no longer “own” it.
If you would like to arrange a Consultation on how money can be controlled instead of owned and the huge range of benefits
this provides, simply click on the link below and complete the quick enquiry form or email us at enquiries@princewealth.co.uk and we will be in touch.
Neither Prince Wealth nor its Trust partners give legal or tax advice. If you require legal or tax advice, you should hire a licensed and qualified solicitor or tax advisor. The above information should not be considered advice capable of being acted upon.
Disclaimer
Prince Wealth Limited is a marketing agent for developers and other third party investment providers and whilst we endeavour to ensure the accuracy of information contained on our website, including figures and forecasts at the time of publication, Prince Wealth Limited does not guarantee or take responsibility for their accuracy. Prince Wealth Limited cannot offer financial advice and is not authorised by the Financial Conduct Authority to do so. Please be aware, that purchases of overseas properties and other overseas investments are not regulated by the Financial Conduct Authority. All investors should seek relevant advice in relation to their personal circumstances before proceeding. Prince Wealth Limited acts as a promoter and/or introducer for third parties. Authorisation from the Financial Conduct Authority is required for any advice on SIPPs. Prince Wealth Limited recommend you seek independent pension advise from FCA authorised pensions advisers. Please refer to the FCA website www.fca.org.uk for this purpose. Quoted figures are not guaranteed and are dependent upon investment performance. Past performance is not a guarantee of future performance.