Although a drop to 24% in the main Corporation Tax rate is good news, when combined with the continued impact of the 50% Income Tax rate the position remains that for entrepreneurs, profit extraction planning proposals offer substantial tax savings.

Reducing the top tax rate to 45% will provide an extended opportunity for deferring income into 2013/14 but it needs to be considered in the context of the complex rules on disguised remuneration under Part 7A of the Finance Act 2011. Our planning solutions are, of course, designed to avoid triggering liabilities under Part 7A when accessing funds held within employee trust arrangements.

On review of the Budget documentation, we are pleased to confirm our tax planning schemes were not affected.

All our leading edge strategies are subject to a rigorous quality control procedure supported by robust opinions from leading Tax Counsel and are provided with the full back up of skilled implementation and defence teams .

EFRBS 2011 is the latest profit extraction strategy to be offered to employer companies with profits in excess of £200k who wish to provide benefits to directors and employees in a flexible and tax-efficient form. The strategy contains a number of enhancements which are attractive, including access to cash by directors and employees in a tax efficient manner without any annual benefit in kind charges.

Rover is a cash extraction scheme which allows you to access funds tax efficiently which are otherwise trapped in existing EBTs and EFRBS arrangements.

Who to contact?

Call the office on 0115 983 5580 for more information.