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How Jonathan was able to take money out of his company – tax-free

Jonathan (not his real name) was 48 years old when we were introduced to him by his accountant. He was the major shareholder of a successful engineering firm which he had run for over 15 years and he earned a good living from his endeavours. Whilst the early years of the business were somewhat of a struggle, he was now in the fortunate position of have accumulated significant cash reserves in the company. However he still had some financial frustrations and concerns.

We talked with him at length about his financial situation and that of his business, and what he wanted to achieve in terms of his lifestyle and business. We found that:

  • his business had substantial capital reserves and cash in the bank account
  • he would prefer the money in the company’s bank account to be in his personal account
  • would like to know how could this could happen in an efficient way
  • he didn’t receive proactive information or guidance from his accountants
  • with retirement around the corner, he wanted to know how best to ‘exit’ from his business.


We carried out a comprehensive review of his existing tax and financial arrangements and:

  • gave him an impartial second opinion on the financial decisions he had already taken
    re-arranged the company’s shareholding to include family members and senior management
    reviewed and adjusted the remuneration arrangements, striking an appropriate, tax-efficient balance between salary, dividends and bonus
    established tax efficient structures that removed tax already paid on company profits
    sought specific guidance from tax, legal and accounting specialists, including from his previous accountants, and assessed their recommendations.


The results so far:

  • Over £800,000 worth of company reserves have been moved into the hands of Jonathan and his family – without having to pay any tax.
  • Peace of mind – the capital is now in his and his family’s  hands; it is also sheltered from Inheritance Tax, Capital Gains Tax and is protected from possible company creditors.
  • Greater choice: these actions have enabled Jonathan to get one step closer to securing enough money to fund his retirement – should he so wish.


4 October 2023


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