Key assessment arranging methodologies for proprietor oversaw organizations in 2008.


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Key assessment arranging systems for proprietor oversaw organizations in 2008. Seat: Peter Jolly Head of Distribution Policy, Standard Life Tony Wickenden employment title. BUSINESS INTELLIGENCE Financial Planning techniques for SMEs.
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Key assessment arranging systems for proprietor oversaw organizations in 2008 Chair: Peter Jolly Head of Distribution Policy, Standard Life Tony Wickenden work title

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BUSINESS INTELLIGENCE Financial Planning methodologies for SMEs Business Intelligence - Financial Planning Strategies for SMEs

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These slides as a component of the entire presentation are given entirely to general thought as it were. No move must be made or ceased from in view of these slides or the words supporting them. Appropriately, neither Technical Connection Ltd nor any of its officers or workers can acknowledge any duty regarding any misfortune occasioned through any such activity or inaction. host@technicalconnection.co.uk 0207 405 1600

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RECIPE FOR SUCCESS CLIENTS Existing New 1 3 STATED N E D S U N S T A T E D 2 4 Business Intelligence - Financial Planning Strategies for SMEs

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OPPORTUNITY 1 Minimizing TAX ON CROSSING THE TAX BARRIER Business Intelligence - Financial Planning Strategies for SMEs

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THE CHOICES FOR NON-RETAINED FUNDS (Retained assets managed in "corporate speculation") EBT/FBT Dividend, compensation, annuity Business Intelligence - Financial Planning Strategies for SMEs

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FAMILY BENEFIT TRUST THE HISTORY EBTs FA1989 S43 Dextra FA2003 sch 24 SEMPRA

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FBT THE ISSUES Deductibility Assessability IHT

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FBT "Post Sempra" FBT (typically seaward) Employees Directors Family £ Loan Employee/Director/relative Employer (Debt) Non Deductible Tax on advantage HMRC

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DIVIDEND/SALARY FUNDAMENTALS DIVIDEND SALARY Non-deductible Paid from post-charge benefits No NIC HRT - 31.1 in next duty year Pensions? No State bens "Ice"/Income moving Deductible NIC (inc 1% s/c) All charge deducted at source Pensions suggestions State bens H/W arranging - care "entirely & only" Business Intelligence - Financial Planning Strategies for SMEs

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BEST OPTION? NET ERD* NET ERD* DIVS OR DIV SAL SALARY £ £ (a) 21% Taxpaying Company (Profits up to £300,000) (i) 20% individual assessment rate 7,900 21% 6,117 38.83% DIV (ii) 40% individual expense rate 5,925 40.75% 5,230 47.7% DIV * ERD = successful rate of finding Business Intelligence - Financial Planning Strategies for SMEs

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BEST OPTION? NET ERD* NET ERD* DIVS OR DIV SAL SALARY £ £ (b) 28% Taxpaying Company (Profits over £1.5 m) (i) 20% individual duty rate 7,200 28% 6,117 38.83% DIV (ii) 40% individual assessment rate 5,400 46.0% 5,230 47.7% DIV * ERD = compelling rate of reasoning Business Intelligence - Financial Planning Strategies for SMEs

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EFFECTIVE COMMUNICATION BEST OPTION? NET ERD* NET ERD* DIVS OR DIV SAL SALARY £ £ (c) 29.75% Taxpaying Company (Profits between £300,000 - £1.5m) (i) 20% individual expense rate 7,025 29.75% 6,117 38.83% DIV (ii) 40% individual duty rate 5,043 47.32% 5,230 47.7% DIV * ERD = powerful rate of conclusion Business Intelligence - Financial Planning Strategies for SMEs

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WHERE THE OBJECTIVE IS "Sparing… " THE PENSION ALTERNATIVE... Despite THE PERSONAL/CORPORATE TAX RATE… ERD 0% … But … . it\'s in a benefits Business Intelligence - Financial Planning Strategies for SMEs

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Wholly And Exclusively "it will be generally uncommon with regards to annuity commitments to need to consider whether there is a non-exchange reason for the business\' choice to make the commitment." Business Intelligence - Financial Planning Strategies for SMEs

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BIM 47106 Business Intelligence - Financial Planning Strategies for SMEs

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OPPORTUNITY 2 CORPORATE INVESTMENT Business Intelligence - Financial Planning Strategies for SMEs

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SO WHAT CHANGED? Legacy charge . Families Loan relationship rules apply to ALL speculation life affirmation contracts Businesses THE BUSIENSS LIABILITY ASSESSMENT AIMS TO CHANGE ALL THAT THROUGH: Business Intelligence - Financial Planning Strategies for SMEs

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SO WHAT ARE THE PRODUCT/TAX FUNDAMENTALS FOR CORPORATE INVESTORS NOW? Legacy charge 1 Businesses 2 3 4 Business Intelligence - Financial Planning Strategies for SMEs

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DEPOSITS Inheritance charge Businesses Business Intelligence - Financial Planning Strategies for SMEs

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COLLECTIVES Inheritance charge Dividends tax exempt Only increases above indexation burdened on acknowledgment No yearly charge paying little mind to bookkeeping premise Loan relationship rules = potential for yearly assessment charge Businesses Business Intelligence - Financial Planning Strategies for SMEs

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UK BONDS No yearly duty Gross up conclusive addition @ 20% Apply CT to last G.U pick up Deduct charge credit from CT to discover last risk Annual expense charge conceivable Growth in worth exhausted (not earned up) Final energize on encashment Gross all development by 20% Add the "excess" to pick up in definite year Apply C.T Take off expense credit Business Intelligence - Financial Planning Strategies for SMEs

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OFFSHORE BONDS Annual assessment charge conceivable Growth in quality saddled Final charge on encashment No assessment credit No yearly duty Final addition saddled at contributing organizations CT rate Inheritance charge 1 2 Businesses Business Intelligence - Financial Planning Strategies for SMEs

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THE CORPORATE INVESTMENT OPPORTUNITY CHANGE = OPPORTUNITY What you require Business Intelligence - Financial Planning Strategies for SMEs

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CORPORATE INVESTMENT... In the first place CHECK Loan reimbursement Distribution Access to assets Entrepreneurs help Attitude to hazard Business Intelligence - Financial Planning Strategies for SMEs

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Anxiety Creation – Liability Audit OPPORTUNITY 3 AVOIDING A SELF CREATED RECESSION Confidence however understanding Business Intelligence - Financial Planning Strategies for SMEs

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OWNER/MANAGER KEYPERSON Premiums The completely and only test No duality of reason Purpose tried at beginning Sum Assured Normally just assessable if premiums deductible "Capital" receipt not assessable Dual reason?

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OPPORTUNITY 4 BUSINESS SUCCESSION Business Assurance is about arrangement NOT item Business Assurance is a "counsels amusement" And it is in no threat of being disintermediated Business Intelligence - Financial Planning Strategies for SMEs

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Let us check you fit the bill for 100% Business Property Relief The offer buy/deal assention Answer "there would one say one isn\'t No IHT issue however there is have to set up a fitting understanding approach/trust - to meet concurred targets Business Intelligence - Financial Planning Strategies for SMEs

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Answer "Here it is" Is it "official"? No Yes 100% BPR denied so change Is the "value" right? Business Intelligence - Financial Planning Strategies for SMEs

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Is the "value" right? No Yes Revise/alter Will sufficient assets/life spread exist to encourage the buy? Business Intelligence - Financial Planning Strategies for SMEs

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Will satisfactory assets/life spread exist to encourage the buy? No Effect proper spread/increment existing spread Yes Are the arrangements subject to suitable trust? Business Intelligence - Financial Planning Strategies for SMEs

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Are the arrangements subject to fitting trust? No New approach/substitution arrangement and trust could be required Yes But OK! Audit arranges frequently Business Intelligence - Financial Planning Strategies for SMEs

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OPPORTUNITY 5 Minimizing TAX ON BUSINESS SALE Business Intelligence - Financial Planning Strategies for SMEs

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WHAT CGT CHANGES MEAN FOR BUSINESS OWNERS Pre 06.04.2008 Post 05.04.2008 Business Intelligence - Financial Planning Strategies for SMEs

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ENTREPRENEUR\'S RELIEF 10% (powerful rate) for first £1m of lifetime increases – 18% after What? How? Increases diminished by 4/9 Sarah offers exchanging business & makes additions of Reduction of 4/9 (entrepreneurial alleviation) Taxable CGT @ 18% £450,000 £200,000 £250,000 £45,000 (ER10%) Business Intelligence - Financial Planning Strategies for SMEs

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ENTREPRENEUR\'S RELIEF Sole dealers Partners Shareholders with "material interest Who carry on the exchange Who? Subtle element "Related transfers" can qualify e.g. Property utilized by business however possessed by disposer of business and discarded at same time as business Trading organizations (not property letting) No base age 1 year least Shareholder must be an officer or worker and own base 5% OSC of organization Business Intelligence - Financial Planning Strategies for SMEs

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Non Trading ENTREPRENEUR\'S RELIEF THE TRADING TEST... Completely with the end goal of carrying on an exchange 80% 20% Non-exchanging OK if not significant Business Intelligence - Financial Planning Strategies for SMEs

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OLD AND NEW COMPARED No change Business Intelligence - Financial Planning Strategies for SMEs

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CGT ON BUSINESS SALES NEW v OLD REGIMES.. Business Intelligence - Financial Planning Strategies for SMEs

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MY BUSINESS IS MY PENSION VALUE DRIVERS BARRIERS TO Realizing VALUE Strong, developing benefits Predictable incomes/cost control Non-dependence on proprietors Scalable items/benefits Little or no opposition Strong brand Innovation Strong customer base high esteem resources No obligation Timing Technology Economic cycle Availability of capital Buyers Health Tax law/Regulation what number are available? What number of are significant? Business Intelligence - Financial Planning Strategies for SMEs

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OPPORTUNITY 6 ESTATE PLANNING FOR BUSINESS OWNERS Business Intelligence - Financial Planning Strategies for SMEs

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FOR PARTNERS A

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