Creating Financial Independence

If you own a business, you might plan to sell it one day and use the proceeds to fund a comfortable retirement for you and your immediate family.

Whether or not this is the case, with the right planning, you can gradually reduce your financial dependence on your business.

Whether or not you’re confident in the ongoing success of your business, there is a process you can put in place to help you stay at the top of your game.

This involves taking sensible steps towards extracting profits from your business and investing them in a tax-efficient environment.

Part of this strategy could be the use of pension plans. They can help for many reasons:

  • You generally receive full corporation tax relief and suffer no personal tax on the contributions the company makes.
  • Funds grow, free of all major UK taxes.
  • You no longer need to buy an annuity at retirement.
  • From age 55 (rising to age 57 in April 2028), you can take up to a quarter of accumulated funds as a tax-free lump sum for any purpose. Your funds are completely ring-fenced outside your business and normally have complete protection from creditors.

This strategy won’t be suitable for everyone, so it’s important I discuss your circumstances in detail.

After taking the time to consider their future, many business owners conclude that creating financial independence from their business using tax efficient savings products is a strategy well worth investigating.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount initially invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

Got a question?

If you would like to speak to me about a particular issue or wish to find out more about the specialist advice services I offer for business owners, please get in touch.