Company owners – unlock your pension pot

Lewis Smith & Co., working with one of our IFA (Independent Financial Adviser) partners, has identified an opportunity for business owners to unlock some of the value of their pension pot.

Company owners can legitimately use their pension fund to make an investment in the business (by buying unlisted shares) or even into commercial property providing they adhere to HMRC regulations. Transactions like this would be subject to CGT (Capital Gains Tax) at 10% but this still could be an attractive proposition in many circumstances. At a time when credit has been difficult to come by from traditional sources this could be a way of financing investment or supporting management buy-out activity.

However this is not an option for everybody. There are a number of restrictions which limit how and when pension funds can be used in this way and as a general rule of thumb we suggest reserves of between £300-400k are required in order to optimise the potential benefits.

If you believe that your business could benefit from unlocking the value of your pension fund then contact Lewis Smith & Co. today for a free, confidential discussion of your options.
Lewis Smith & Co. – Bookkeeping, payroll and credit control for Blackheath, Netherton and Cradley