Holding on to your wealth is easier said than done. It takes thought, knowledge and planning. At all times there are forces chipping away at what you’ve worked hard to build; wealth preservation is an umbrella term for what you can do for shelter.
Your salary doesn’t show how wealthy you are, what’s more important is your asset base. If you want to one day live comfortably without relying on your salary (and who wouldn’t?), we can help you build an asset base with a passive income goal.
Improve Financial Performance
Like everything we do at Hive, wealth preservation serves our purpose of helping dentists improve their financial performance. Precisely what we might advise you depends on your financial circumstances and your personal goals, and so we’ll need to understand where you are and where you want to be.
HMRC has been busy of late, with a flurry of assaults on property owners, which means it really pays to know about your options. There are legitimate workarounds to:
- higher stamp duty (up 3%) on second home purchases
- less tax relief on borrowing for higher rate taxpayers
- 28% capital gains tax on residential property
- 32.5%+ tax on extracting funds from your company
- 40% inheritance tax on assets
Mr and Mrs J had several jointly owned properties, although Mr J was a higher rate taxpayer. We advised that transferring ownership to Mrs J would easily achieve tax savings of £10,000 a year, and we were able to guide their conveyancer to obtain those savings immediately.
Dr P had been living in the UK since qualification, but had family overseas and wanted to retire with them. He had a property portfolio of £2m, some mortgaged, but others debt-free after being inherited.
As a higher rate taxpayer he knew about the forthcoming tax penalties on mortgaged property but still had intentions to make future property purchases in the UK.
We highlighted his considerable inheritance tax exposure and suggested a non-UK pension could serve his retirement plans better than a UK one, especially given the negligible tax relief given to higher rate taxpayers in the UK. Dr P’s tax savings until retirement were forecast to be in the £100,000s.
Dr S was thinking about setting up a second squat practice, and while he was earning in excess of £400k annually his personal needs were only £150k.
We provided an illustration of how he could set up a group to:
- Reduce taxes by £60k per annum
- Protect historic cash generated and facilitate more speculative property investments
- Allow a second (or third or fourth) site to be built tax efficiently
- Allow the sale of tax free sites in the future
Hear from our Clients
Hear from our Clients
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