Care home business with a cumbersome structure
Background: We were approached by the owner of a care business to look at his current trading structure and provide tax advice. He operated two stand alone companies and an LLP, which held property from which the companies trade. Rent was then charged by the LLP to the companies for the property. The structure was incredibly tax inefficient for Inheritance Tax, Income Tax and Capital Gains Tax purposes
How we helped: Our review resulted in restructuring which, based on the current values, has saved over £800k in Inheritance Tax exposure, over £460k in Capital Gains Tax and over £160k per annum in Income Tax.