Tax Planning Case Studies

Our client planned to sell a leasehold property as part of a comprehensive property sale tax strategy, which included a minority share in the freehold while retaining another property in the same building. He aimed to minimize his tax liabilities on the sale and preserve long-term value, all while strictly adhering to tax regulations.  

We advised on the structure of the transaction in a tax-efficient manner, addressing Capital Gains Tax (CGT), Stamp Duty Land Tax (SDLT), and Inheritance Tax (IHT) implications, while providing ongoing guidance for retained properties. Our expertise also encompassed a share portfolio tax review to ensure optimal outcomes.  

We recommended transferring the interest into a corporate structure, enabling the client to benefit from potential corporate tax advantages and streamline any future ownership changes without excessive tax burdens.  

For the retained property, we discussed the benefits of holding it within a trust to reduce future IHT exposure and facilitate intergenerational wealth transfer with greater tax efficiency. This approach aligned with the client's long-term objectives for asset preservation.  

Through strategic asset structuring and effective tax planning, the client successfully minimized his long-term tax liability and was delighted with the results, benefiting from significant tax savings while maintaining full compliance with tax law. This careful planning also laid the groundwork for sustained financial security, providing a solid foundation for potential start-up business support in the future.

We specialize in guiding entrepreneurs from the early stages of their business journey, helping to create a solid foundation for long-term growth. A recent client, offering consultancy services, required advice on structuring their new business, particularly regarding their property sale tax strategy. 

We analyzed the client’s business needs and determined that a limited company structure would best serve their goals, providing both tax advantages and limited liability protection compared to sole proprietorship or partnership options. 

We managed the company formation process, including administration and essential company secretarial services, ensuring regulatory compliance from the start. At inception, we offered tailored advice on an optimal shareholding arrangement and cash extraction methods, which set the client up for efficient tax planning as the business scaled. Additionally, we conducted a share portfolio tax review to ensure their investments were optimized for growth. 

Once operational, we implemented monthly bookkeeping services, handled quarterly VAT returns, and developed cash flow budgeting and forecasting tools. This financial clarity allowed the client to make informed decisions and maintain financial health. 

As the business expanded, we provided continuous support through strategic business planning, cash flow management, and performance monitoring to keep the company on track toward its growth objectives. 

With our comprehensive support, the client established a stable and tax-efficient business structure, benefiting from consistent financial insights and strategic guidance to grow sustainably. We offer more than accounting services—we’re a partner in growth, providing start-up business support, tax and business structure expertise, reliable financial management, and proactive support to help start-ups thrive at every stage of their journey.

Our client sought a comprehensive share portfolio tax review before selling a diverse array of investments held outside of tax-advantaged accounts like ISAs or pensions, which could expose them to significant tax liabilities. The portfolio included bonds, equities, and shares acquired through Employee Stock Purchase Plans (ESPP) and Restricted Stock Units (RSUs), each presenting distinct tax implications.

We conducted a thorough review of the portfolio’s historical costs and current valuations, laying the groundwork for an accurate calculation of potential capital gains and taxable income. This process identified opportunities to reduce taxable gains through effective cost management, which is crucial in any property sale tax strategy.

Understanding the nuances of the ESPP and RSU holdings was critical. We analyzed the terms of each scheme to determine whether income tax or capital gains tax would apply upon sale. By identifying which portions of the portfolio were subject to income tax, we tailored a tax planning strategy to minimize unnecessary liabilities.

To maximize annual allowances, we advised the client on strategically timing sales, spreading transactions across tax years where beneficial. Additionally, we explored the potential for share transfers within tax-free allowances, further reducing overall exposure.

Through our strategic tax planning, the client significantly minimized their tax liability on the portfolio sale. By leveraging precise timing, utilizing allowances, and understanding the intricacies of employee share schemes, we maximized the client’s after-tax returns. 

For clients also seeking start-up business support or managing complex share portfolios, our specialized approach delivers valuable insights, precise tax reduction strategies, and peace of mind, ensuring they retain the maximum value from their investments while remaining fully compliant.