Business Clients

Stakeholder Pensions
Stakeholder pensions are a form of personal pension which meets prescribed rules as laid out by the government. These rules dictate the costs and access that must be offered by the pension scheme. Historically such schemes are usually of a simpler nature with a more restrictive range of choices offered in order to achieve the lower level of costs.

Personal Pensions
A personal pension is a type of savings scheme that uses government rules to encourage long-term saving in preparation for retirement. A pension allows an individual to recover the tax paid on the contribution into the scheme. The pension scheme does not suffer capital gains or income tax whilst it is invested. Pensions can be accessed from the age of 55 and can give the client up to 25% of the fund as a tax-free lump sum. The balance must be used to generate an income in retirement.

Self Invested Personal Pensions (SIPP)
A self invested personal pension offers the client the opportunity to invest in the full range of permitted investments for pensions. Frequently this will involve the purchase of commercial property by the pension scheme, sometimes using a loan. Other assets may be bought by the pension scheme subject to government restrictions. These schemes are also used when a client does not wish to purchase an annuity at the time of retirement and instead decides to remain invested to generate their retirement income.

Small Self Administered Schemes (SASS)
These pension schemes are very similar to a SIPP but are in effect owned and run by a business. The primary advantage of such schemes is their ability to loan money back to the business at commercial rates. If you are an owner/director and would like more information about a SASS please contact Beechwood to arrange an initial meeting.

Group Personal Pensions
Group Personal Pensions are the means by which employers meet their responsibilities and obligations to provide retirement plans for their employees. If you are an employer and would like to discuss how the government’s latest pension rule change affects you, contact Beechwood for a no obligation, no cost initial meeting.

NEST – National Employment Savings Trust
The NEST will be introduced over a 4 year period, commencing on 1 October 2012. An employer will be required to automatically enrol eligible employees into a qualifying pension scheme. The auto-enrolment date will depend on the size of the employer. The employer must offer the scheme to all jobholders aged over 22 and who are earning more than £5,035. When an individual is enrolled in NEST they must contribute 4% of their relevant earnings and the employer must contribute 3%. 1% is given to the scheme as tax relief from the government.
Employers can choose to offer their own alternative pension scheme, if it meets or exceeds the minimum standards laid out in the Pensions Act 2008.

Whilst entrepreneur’s relief reduces the capital gains tax on the sale of a business to 10% for the first £5million of gains during an individual’s lifetime, sometimes this isn’t helpful enough.

Utilising our connections, we might be able to help you plan a more efficient exit strategy for gains over £2million.

For gains of less than £2million there are a number of investment strategies that can achieve similar results.

We can also help owners plan their inheritance tax strategy as the proceeds of sale would fall within the reach of Inheritance Tax, when previously they would not.

There is no one-size-fits-all strategy. Advice in this area is by its nature bespoke and time consuming.

Call Beechwood Financial today to arrange your free initial consultation.

Death in Service Benefits for smaller firms
Firms with less than five staff often find it impossible to offer a tax efficient death in service benefit to staff and directors.

It is now possible to write individual life insurance policies so that they are tax efficient for the employer and pay the proceeds to an employee’s widow or dependants free of tax. A benefit of up to 25 times salary can be available.

To enquire about tax efficient death in service plans for employees and directors, call Beechwood Financial today for your free initial consultation.

Keyman Protection
If your business is dependent on a key member of staff to generate sales or profits and if a person was to fall ill, would your business cope with the significant loss of earnings and turnover whilst you searched for a new member of staff, paid the recruitment fees and trained your new member of staff to be as productive. You could protect your business by paying a monthly premium for insurance that would cover these costs should your key member of staff become ill or die.

Shareholder / Partnership Protection
If your business partner or fellow shareholder was to die or suffer a critical illness it is not just their family that will suffer. The business will suffer due to their lack of availability, sources of finance may become restricted and conflict could develop around succession planning. Is your business partner widow an ideal business partner for you or would they rather realise their share of the business for a fair value and you secure their share of the business to retain control. Drafting legal agreements and the provision of suitable insurance can insure a business and all families it supports maintaining financial stability should the worst occur.

Lump Sum Insurance
This insurance, gives you the peace of mind of knowing that should you die unexpectedly your debts and liabilities will be paid off leaving your loved ones free of your responsibilities. It can also leave behind a lump sum of money that could help your family and loved ones rebuild when you have gone.

Income Replacement Insurance
If you die while your family and loved ones are still dependent on you financially, this type of insurance can provide a regular monthly tax-free amendment to replace your lost earnings. Typically this is discussed in terms of £1000, £2000 or £3000 per month provision for your family. This insurance provides a great value for money and peace of mind for you and your loved ones.

Critical Illness option
Lump sum and income replacement insurance can also be specified with a critical illness element. This means that should you be diagnosed with one of the defined conditions such as cancer, heart attack and stroke this policy would pay out either a lump sum or income replacement amount that would allow you to focus on your family and your healing rather than rushing to return to work.

Long term sickness income protection
The current state provision for long-term incapacity payments is currently set at under £500 per month. If your employer does not pay more than statutory sick pay or if you should suffer an illness or injury that means you are unable to return to work before your sick pay runs out, this policy could pay to you up to 60% of your gross earnings for the rest of the life of the policy.

To discuss your business protection needs called Beechwood to arrange your initial meeting.

ISA
An ISA is a way of investing money that the government permits individuals to do, so that any growth or income generated is not subject to tax. Individuals are allowed to contribute £10,200 per year each into an ISA. The entire allowance can be used to contribute into stocks shares and other equity-based investments or half of the allowance can be used for a bank account.

Unit trust/open ended investment Company/investment trust
These are types of collective investment. Investors pool their money with others to be invested jointly under the control of a fund manager who will invest according to defined parameters. Any growth realised from this type of investment can be assessed for capital gains tax, any income generated is taxed as the marginal rate.

Structured products
These are contracts offered by banks and other investment houses, but will seek to deliver a return that is related to a particular stock market index and may or may not offer some form of capital protection in the event that index should fall in value.

Insurance investment Bond
These are single premium life-insurance policies that will pay out the value of the underlying investment at the time of death of the client or life assured. These plans may be held on the shore and subject to UK income tax, or held offshore so that no tax is paid until money is returned to the UK in excess of certain allowances.

Enterprise investment scheme, venture capital trust & business property relief.
These investments historically have carried a high degree of risk but are encouraged by the government who provides a series of tax incentives to encourage investment in smaller companies. These tax incentives are at least equally as important as the potential investment returns.

To learn more about group pensions for employees, please firstly register your interest and then access information here.

Alternative Investments
For experienced and high net worth investors we can access a range of audited and approved alternative investments that can bring specific opportunities for some clients.