Case profile: The business wwner

Background

Business Owner in late 40s living in Hertfordshire with HQ in London

51% owner of a building surveying company

Background

• Service - Previous financial adviser refused to talk about property even though the client owns a number of properties and runs a property based business.
• Financial Planning - The client had a number of plans that had been set up but no clear strategy to achieve their long term goals
• The client wished to set-up a local office in Hertfordshire to run alongside the HQ in Central London
• Business had switched from Limited Company to an LLP for tax reasons. Client wished to minimise tax within the new structure
• No Key person insurance in the LLP

Challenges

• Consolidated all current pension schemes into a Self Invested Personal Pension (SIPP) that specialised in property purchase.
• Used annual allowances and pension input periods to invest £250,000 into the SIPP in one tax year (liaised with their accountant to get the figures.)
• When client found an office in Hertfordshire, introduced them to a commercial mortgage broker to set up the loan.
• Guided the client through the whole SIPP property purchase and provided on-going advice.
• Simplified and consolidated investments.
• Developed a bespoke investment strategy, suitable to the client’s risk profile.
• Using cash flow analysis we calculated investment sums required to fund retirement lifestyle
• Arranged bi-annual meetings to review strategy on a regular basis
• Set up key person insurance

What we did

• Profitable office bought tax efficiently through SIPP.
• Produced easy to understand reports to analyse on-going progress towards goals.
• Saving client £100,000 in income tax payments in one year

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NB: This is an example case history only and is not intended to represent any specific individual or their situation. Its purpose is solely to give you an idea how financial planning could work in a given set of circumstances. We always aim to keep things simple, but should you have any questions relating to the case study above, please feel free to contact your financial planner at Wealth Matters as per the details given on our contacts page.