6 Brabazon Park,

Golf Course Lane

Bristol BS34 7PZ

Case Studies

• Property Co-Ownership with Pension

  Trading premises are now co-owned by a Small Self Administered pension scheme (SSAS*) and the owners of the business. Rent is paid at market rate by the trading business.

   

  Quro was approached to review ownership structures and advise on the most suitable option. We undertook a review of the business owners existing pension schemes and the level of cash available for property investment and created a property purchase model that was broken down into numerous phases. Insufficient funds were available via the pensions to purchase outright so a co-ownership model was devised.

   

  After the best option was fully explored and understood, Quro then project managed the whole thing. This involved:-

   

  - all existing pension research and advice

  - setting up the new self invested pension & dealing with pension transfers

  - instructing & liaising with solicitors who specialise in this structure

  - instructing & liaising with surveyor to determine all values

  - negotiation of any required loan finance at best market terms

   

  Quro's ongoing pension advice service means the scheme is kept up to date with all regulatory reporting requirements met.

• Buying your Business Premises

  Company image now greatly improved with a much better working environment for their staff in their new premises.

  The business owners were able to use their pension money to help their business today and make a great investment for retirement under their control.

  The business was previously paying rent for old premises in poor condition in remote location costing £25k p.a. The business needed their own bespoke premises to improve its image and working environment for staff.

  The clients approached Quro to review the ownership options and concluded that a Small Self Administered Scheme SSAS* was the most suitable option to purchase for the following reasons:-

  1.       Less overall borrowing required to purchase as cash was available from their existing pension funds

  2.       Future growth of the property and rent received would be tax free

  3.       Property ownership would be held away from any trade company risk

  4.       Rent paid by company would go to the clients via their pension without income tax and national insurance** being deducted

  5.       Rent would no longer be seen as dead money by the business owners, but as an investment for their retirement

• Saving you and Your Business Tax

  A client was referred to us by their Accountant and Quro saved the company £90,000 of corporation tax.

  In addition :-

  - the business owners who are higher rate tax payers saved £11,000 per annum in income tax 

  - we reduced their personal outgoings by £15,000 per annum by reducing their home mortgage from sale proceeds

  - the property growth and rental income is now tax free 

   Quro achieved this by devising a plan that resulted in the company dumping profit into a new company pension known as a Small Self Administered Scheme* (SSAS). The SSAS then purchased a share of the main trading premises from the company owners. This released funds to them personally which were used to reduce their personal mortgage and thus cut outgoings. 

  We worked with the clients to create the plan. We then project managed the plan leaving the clients free to run their business. This involved arranging and coordinating the Solicitor; the Bank borrowing; the Surveyor; the Accountant and the Pension Companies on their behalf.  

   

• Helping finance your business

  Clients ran a successful business that needed to grow. Organic growth would be too slow. The owners and company were already higher rate tax payers and so a combination of tax planning and financing was needed to help them purchase other smaller businesses operating in the same field.

  Quro helped them secure a line of finance following negotiation with several banks as well as arranging a loan back from their SSAS* following a 'profit dump' from the company done to reduce profits and save tax. The bank gave them matched finance for the goodwill spend and up to 100% finance on property assets purchased as part of the acquisition.

  The business can now move forward & grow at a pace that suits. Quro has also been engaged to assist the MD create a strategic plan for the business owners.

   

• Protecting you and your family

  A new client asked us to review their financial planning. They were married with 2 young children. Our starting point was to discuss their family budget and understand how money is earned and how it is spent.

  Through a series of discussions we were able to identify the level of income that would be needed should an illness prevent work or premature death occur while the children are under 21. We were able to help them understand what State aid would be available and what additional insurance they needed. We then searched the whole market & advised the right amount of cover with the best provider.

  At the same time we placed the new policies in trust and put in place a suitable Will** that also addressed the need for named guardians for the children.