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Capital Extraction

Capital-Extraction

As specialist advisers to business owners, we often remind our clients of the importance of extracting capital (within reason) from their business when they can.

We do not believe that you should wait for the sale of your business before getting all of the capital from it; let’s face it, no business is ever safe and you never know what’s around the corner.

Selling a business is also a hit and miss game, it’s not easy to get what you believe is full value for your business in one fell swoop!  Valuation is very subjective and in most cases, certainly with small businesses, the owner is the business, and therefore there is no goodwill without that person remaining in the business.

Therefore, at Bankfield, we work closely with business owners and throughout the year we explore the ability to extract some capital from the business for the purposes of diversification and future security.

Call us now on 0116 253 5600 to learn more about how we can make the most of your hard efforts, or simply complete the enquiry form.

As well as ensuring you have not placed all of your eggs in one basket, this also has certain tax planning advantages.  Making an employer pension contribution is just one example, where you can extract capital (within limits) and claim the amount against corporation tax.  Once the capital is in the pension, it grows virtually free of tax and allows diversification, such as investment into commercial property or other assets aside from your main business.

Such vehicles also shield those assets from creditors, so if your company goes through financial difficulty, at least the assets within the trust arrangement of a pension are safe.

Bankfield’s Corporate advisers specialise in Business Risk Management and have up to date qualifications in trusts, insurance, investments, pensions and tax planning to help ensure that you receive the most suitable professional advice.

Tax treatment is based on individual circumstances and may be subject to change in the future. Trust Planning and Tax Planning are not regulated by the Financial Conduct Authority.