Profit Extraction Trust (PET)
The Profit Extraction Trust (PET) is an alternative payment structure to dividends/PAYE and bonus whilst mitigating or eliminating Corporation Tax, Personal Tax, National Insurance (NICs) and Inheritance Tax (IHT).
The funds drawn down can be utilised for any means. They could be used to repay personal loans, private mortgages or even returned back into the company in order to assist with working capital requirements. In this instance the monies would be invested into the company by way of a Director’s loan account, enabling the individual to receive back the monies at a later date free of any personal income tax.
Profit Extraction Trust (PET) – Key Benefits
- The funds in the trust are outside of the directors’ personal estate for Inheritance Tax (IHT) purposes
- Assets held in the trust are free of Capital Gains Tax
- Mitigation or elimination of Corporation Tax and Personal Income Tax.
Profit Extraction Trust (PET) – Available To
Available to limited companies and limited liability partnerships only.
Contributions to be at least £150,000 although it is recommended that this figure does not represent more than 85% of profits.
Call us to discuss your requirements on 0871 789 9988, or click here to contact us.
