Tax Planning Idea - Use tax free pension contributions to reduce Corporation Tax
Contributions to director and staff pension schemes are an extremely tax efficient method of extracting funds from a company. They are tax free for the Director or employee and are tax deductible for the company. Company pension contributions can be made to fully utilise a director’s annual pension contribution allowances plus any unused allowances from previous years. Another common planning idea is to use company pension contributions to enable a pension scheme to accumulate funds to acquire commercial property.
As always, the key to successful tax planning is to seek advice as early as possible.
If you would like more information, or would like to discuss your tax affairs in more detail, please don't hesitate to contact our Tax Partners, Steve Crompton or Lucy Williams, on the details below: