Company Owners and VCTs
Taking money out of your company
If you’re a company owner and you find yourself reluctant to take the profits out of your company because of the tax you will pay, then a VCT may be your solution.
Here’s an example of how it could work:
He cannot withdraw this money within the first five years. But after five years he can take it out tax free. This is much less of a restriction than if he had made a pension contribution.
See Pension Contributions for more information.
He can repeat this process on a yearly basis to create a conveyor belt of VCTs. Click below to find out more about the lifetime tax reducer.
Think a VCT could work for you and your business? Call 01793 686393 to save tax today!
Taking money out of a company: VCT vs No VCT
VCTs - it's not all about tax
It’s true that a VCT is a great tax saver. But it should not be the only reason you invest in a VCT. It is true that a £100,000 investment might only cost you £70,000 (as you get a £30,000 tax saving). But they can be great investments too.
Find out more about Venture Capital Trusts.
If you have a question about reducing your tax or want advice, or just want to have a chat about it with a UK Qualified Independent Financial Adviser, then phone now on 01793 686393 or contact us online.