As a business owner, looking after your finances is one of the most important ways you can look after your company and the people in it.

As the government’s spring budget has catapulted pensions back on the agenda for many, we spoke with company partner David Vallance and managing partner Stephen Parker, to get their thoughts. Based in the West of Scotland, they are both chartered financial planners who specialise in working with business owners at all stages.

Why should I consider my pension options as a business owner?

“Pensions are a highly tax-efficient savings tool for business owners and should not be overlooked. The “win-win” of corporation and personal tax relief is unbeatable. Personal tax relief is up to 47% in Scotland or the business/employer can make contributions which are allowable for Corporation tax. The latter also saves on National Insurance.

“We are seeing business owners use these rules as part of a strategic exit strategy. By extracting profits they can convert business wealth to personal wealth. Once in the pension environment, they enjoy tax-free growth on their assets.”

What are some things about pensions to consider?

“With generous tax reliefs inevitably come some restrictions. For example, there is no access before age 55 (57 from 2028). It is also important to consider personal/company situations fully so as not to fall foul of the rules.

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