In this Slideshare in linked webinar Simon will provide ideas how business owners (UK focus) can take money from their businesses in a tax efficient manner.

1. Speaker - Simon Baldwin
Company - High House Wealth Management Ltd
Simon Baldwin, a leading authority in Tax Efficient
Investment Planning for business owners and a
Certified Financial Planner, whose advice is
guaranteed by FTSE 100 Company. In this Webinar
Simon will provide ideas how business owners can
take money from their businesses in a tax efficient
manner.
Want to know more?
There is a link at the end of this deck to the
associated blog and webinar recording.

2. TA X E F F I C I E N T P L A N N I N G F O R B U S I N E S S O W N E R S

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W E L C O M E
Simon Baldwin
High House Wealth Management Ltd
Associate Partner Practice of St. James’s Place Wealth
Management
The Partner Practice represents only St. James’s Place Wealth Management plc
(which is authorised and regulated by the Financial Conduct Authority) for the
purpose
of advising solely on the Group’s wealth management products and services,
more details of which are set out on the Group’s website at
www.sjp.co.uk/products.

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TODAY’S AGENDA
• About St. James’s Place
• Profit extraction with pensions
• Profit extraction with Enterprise Investment Schemes
• Enterprise Investment Scheme case studies
• Business succession and estate planning
• Summary
All EISs must invest in unquoted UK smaller companies and such companies, by their
nature, involve a higher degree of risk than investment in larger companies. As such there
is a risk that any of the investments may not perform as hoped and in some circumstances
may fail completely. Also, due to the nature of underlying assets, EISs are fairly illiquid and
such investors must be aware they may have difficulty, or be unable to realise their shares
at levels close to that which reflect the value of the underlying assets. Therefore this type

5. A B O U T S T. J A M E S ' S P L A C E W E A LT H M A N A G E M E N T

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ST. J AMES ’S PLAC E W EALTH MAN AGEMEN T
• A leading UK wealth management organisation
• Founded in 1991
• A FTSE 100 company with a market capitalisation of
c.£5.5 billion
• Over £90billion client funds under management
• Over 2,370 Partner Practices of the St. James’s Place
Partnership
• Supported by over 1,200 employees
All information as at 31st December 2017

7. AWARD-WINNING WEALTH MANAGEMENT

8. P R O F I T E X T R A C T I O N - P E N S I O N S

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TA X E F F I C I E N T P R O F I T E X T R A C T I O N ?

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A N N U A L A L L O W A N C E A N D C A R R Y
F O R W A R D R E L I E F
£40,000 £40,000 £40,000
TO
£10,000
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any ta
on individual circumstances
2015/16 2016/17 2017/18

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Q U I C K E X A M P L E
Director
• Can contribute up to £40,000
• Plus up to another £120,000 via Carry Forward
• £160,000 into pension
• Reduces profit by £160,000
• Corporation tax saving of £30,400
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any ta
on individual circumstances
The value of an investment with St. James’s Place can fall as well as rise. You may get back less than

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LIFETIME ALLOWANCE
£1.25
MILLION
£1.0
MILLION
£1.0
MILLION
2017/18
2016/172015/16
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any ta
on individual circumstances

13. P R O F I T E X T R A C T I O N - E N T E R P R I S E I N V E S T M E N T
S C H E M E S

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ENTERPRISE INVESTMENT
SCHEMES
• Enterprise Investment Schemes (EIS) are
investment vehicles designed to encourage
investment into UK small businesses
• They offer investors various tax benefits to
encourage investment, but must be held for a
certain length of time
All EISs must invest in unquoted UK smaller companies and such companies, by their
nature, involve a higher degree of risk than investment in larger companies. As such there
is a risk that any of the investments may not perform as hoped and in some circumstances
may fail completely. Also, due to the nature of underlying assets, EISs are fairly illiquid and
such investors must be aware they may have difficulty, or be unable to realise their shares
at levels close to that which reflect the value of the underlying assets. Therefore this type

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E I S TA X Y E A R P L A N N I N G – C U R R E N T Y E A R O P P O RT U N I T Y
2014/2015 2015/2016 2017/2018
Current Year
2016/2017 2018/2019
30% Income
Tax Relief
(maximum
investment: £1
million)
30% Income
Tax Relief
(maximum
investment: £1
million)
Unlimited Capital Gains Tax Claim and Deferral up to
36 months
Unlimited
Capital Gains
Tax Deferral
Relief
Unlimited
Capital Gains
Tax Claim and
Deferral up to
12 months
Income Tax Relief cannot exceed an amount which reduces an investor’s income tax liability to nil.
Capital Gains Tax Deferral Relief refers to the ability to defer paying CGT on all or part of a
chargeable gain by investing the proceeds in qualifying EIS shares. Applies to any chargeable
gains arising up to 36 months prior to or up to 12 months after the date on which the qualifying
EIS shares are issued. No limit to the value of gains that can be deferred. All EISs and must
invest in unquoted UK smaller companies and such companies, by their nature, involve a higher
degree of risk than investment in larger companies. As such there is a risk that any of the
investments may not perform as hoped and in some circumstances may fail completely. Also, due
to the nature of underlying assets, EISs and are fairly illiquid and such investors must be aware
they may have difficulty, or be unable to realise their shares at levels close to that which reflect the
value of the underlying assets. Therefore this type of investment should not be considered unless

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INCOME TAX RELIEF
MAXIMUM
INVESTMENT
MINIMUM TERM
DIVIDENDS
GROWTH
CGT DEFERRAL
IHT EXEMPTION
(BPR)
30%
£1m (plus £1m carry
back)
3 YEARS
TAXED
TAX EXEMPT
YES – NO MAXIMUM
AFTER 2 YEARS
EIS
LOSS RELIEF YES
All EISs and VCTs must invest in unquoted UK smaller companies and such companies, by their nature, involve a higher degree of risk
than investment in larger companies. As such there is a risk that any of the investments may not perform as hoped and in some
circumstances may fail completely. Also, due to the nature of underlying assets, EISs and VCTs are fairly illiquid and such investors
must be aware they may have difficulty, or be unable to realise their shares at levels close to that which reflect the value of the
underlying assets. Therefore this type of investment should not be considered unless you are willing to accept a higher level of risk. The
levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual
E I S TA X Y E A R P L A N N I N G – C U R R E N T Y E A R
O P P O RT U N I T Y

17. E N T E R P R I S E I N V E S T M E N T S C H E M E S – C A S E
S T U D I E S

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I N C O M E TA X R E L I E F
Issue: A 45-year old executive with £180,000 of income with spare capital is looking for tax-
efficient saving and an investment to broaden their range of investments.
£30,000 taxed at 45%
£13,500
Total tax payable = £67,098
£47,196
£6,402
• Claim income tax credit of
£30,000
(i.e. 30% of £100,000)
• Invest £100,000
• Tax bill reduced from £67,098 to
£37,098 (a 45% tax reduction)
£117,990 taxed at 40%
£32,010 taxed at 20%
Solution:
All EISs must invest in unquoted UK smaller companies and such companies by their
very nature, involve a higher degree of risk than investment in larger companies. As
such there is a risk that any o the investments may not perform as hoped and in some
circumstances may fail completely. Also due to the nature of underlying assets, EIS’s
are fairly illiquid and such investors must beware they may have difficulty, or be unable
to realise their shares at levels close to that which reflect the value of the underlying
assets. Therefore this type of investment should not be considered unless you are
willing to accept a higher level of risk. The levels and bases of taxation and reliefs from

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C A S E S T U D Y - B U S I N E S S O W N E R S
• Company Director currently
receiving income of £50,000
per year (40% tax payer)
• Additional profit in company
of £50,000 that he would like
to extract
• Requires a tax efficient
method of extraction

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PROFIT EXTRACTION USING EIS
Assumes client is a
40% taxpayer
For illustrative
purposes only
£48,750 VCT
£14,625 Income
Tax Relief
£50,000 Net
£50,000
Dividend Paid
£14,625
Additional Tax
Liability
£35,375 Net
Company
Profits
All EISs & VCTs must invest in unquoted UK smaller companies and such companies by
their very nature, involve a higher degree of risk than investment in larger companies.
As such there is a risk that any o the investments may not perform as hoped and in
some circumstances may fail completely. Also due to the nature of underlying assets,
EISs & VCTs are fairly illiquid and such investors must beware they may have difficulty,
or be unable to realise their shares at levels close to that which reflect the value of the
underlying assets. Therefore this type of investment should not be considered unless
you are willing to accept a higher level of risk. The levels and bases of taxation and

21. S U M M A RY

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S U M M A RY
• Your business may not end up being their pension
• Use tax efficient investments for efficient profit extraction
• Pensions – use or lose
• Explore other types of tax efficient profit extraction
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any t
on individual circumstances
Wills and Powers of attorney involve the referral to a service that is separate and distinct from
those offered by St. James’s Place.

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O U R G U A R A N T E E
St. James’s Place guarantees the suitability of the advice given by members
of the
St. James’s Place Partnership when recommending any of the wealth
management
products and services available from companies in the group.

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You can access webinars and presentations like this and more besides through our
SmartRoom service here
You can read the associated blog and listen to a live recording of this presentation
by clicking here
You can read Simon’s profile here

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