Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing.

How to use your pension as part of your business exit strategy

Even if you are not planning to retire or leave your business in the near future, it is important to have a Business Exit strategy in place in advance to help you to plan for the future.

A planned exit will be much smoother than an exit that is forced upon you if your circumstances were to suddenly change.

What ways could I exit my business?

The main options for exiting a business are selling the business, passing on the business to a family member, negotiating a management takeover or closing down the business.

Selling your company

If you choose to go down the exit strategy of selling your business, then as a business owner you may be looking to use the money from the sale to fund your own retirement.

If you pay a lump sum into your pension before selling your business, then you can reduce your capital gains tax and benefit from pension tax relief.

It is worth speaking to a financial adviser at Four Wealth Management before investing large lump sums as there are other tax implications to be aware of.

For example, the lifetime allowance for the 2021/22 tax year is £1,073,100. This is the maximum amount that you can invest in a pension without incurring a tax charge.

Speak to a Financial Advisor

Find out more about using a pension as a business exit strategy

You can book a no-obligation meeting with a financial adviser at Four Wealth Management to discuss your business exit strategies and plans for retirement by calling us on 0117 973 0500 or book online.

Exit strategies involves the referral to a service that is separate and distinct to those offered by St. James’s Place.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is dependent on individual circumstances.

Enquire Now

If you have any queries or would like to arrange a face to face meeting with an adviser for a no obligation review of your personal finances, simply book a call back using the form below. Alternatively, you can call us on 0117 973 0500.

The Partner together with St. James's Place Wealth Management plc are the data controllers of any personal data you provide to us. For further information on our uses of your personal data, please see the Partner's Privacy Policy or the St. James's Place Privacy Policy.

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How to use your pension as part of your business exit strategy
FourWealth Management