The Business Owner

We were contacted by an accountant from Brighton, who asked whether we could assist a company he looked after. When we asked what the problem was, he explained that the company he originally advised had acquired another company for an agreed consideration of £285,000.

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The combined company now had two directors, and the older director was becoming increasingly angry, as given the lack of financial progress, it seemed unlikely that he would ever be paid out.

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A meeting was arranged with the accountant and the two directors, but the meeting was interrupted throughout by the older director. We terminated the meeting.

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Apologies followed from the younger director and the accountant, and they stated that perhaps it would be better to re-arrange the meeting in two years’ time.

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I informed them that they should take advantage of the tax planning opportunities that were then available, as these could raise cash for the company within a two-to-three-month time frame.

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All subject to the older director agreeing to exit the company upon receiving his cash.

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We then instructed our solicitor to prepare a binding agreement. The older director seemed relieved that the money he thought he would never receive was now legally assured. He stated that he would resign as a Director immediately and would be prepared to wait three months to receive the £285,000.

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We were now instructed by the younger director and explained our “money in a circle” plan to him – this was part of the Total Planning System™ that I used with many other small to medium-sized businesses.

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There is a world of difference between an adviser who focuses solely on personal financial planning and one who understands the corporate market. A corporate adviser recognises how tax, pension, and ownership structures interact within a business and can identify opportunities that general advisers may overlook. This expertise ensures that strategic decisions — such as those involving director pensions or company-owned property — are fully aligned with the company’s commercial objectives.

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The unusual aspect to this planning was that the younger director was able to obtain a loan of £300,000 from a family trust to start the financial process rolling.

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The trust had been created by a STEP-qualified adviser, ensuring that all fiduciary and tax aspects were professionally structured and compliant.

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The £300,000 was used to make a large company pension contribution – this mopped up all the profits from the current financial year and created a financial loss for the previous year, generating an overall cash flow saving of £60,000.

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The director had numerous small private pension pots totalling £180,000, which we directed into a flexible director’s pension scheme – such schemes are very beneficial for directors and their companies.

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Now we had a total of £480,000 in cash in this pension scheme.

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The company owned its own trading premises valued at £350,000 but this had a £150,000 mortgage. The pension company acquired the premises, which enabled the company to repay the mortgage in full (creating further future cash flow savings) and retain £200,000 in cash.

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Clearly, the £260,000 of cash flow improvements did not fully match the loan of £300,000, but the trust was content to wait for the rest of the money, as now there was only one director to support.

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We carried out additional planning for the company, which set the business on a firm growth path, and years later the dynamic younger director sold the company for a handsome sum.

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Key Lessons and Outcomes

This case demonstrates the value of corporate-level financial planning carried out by a knowledgeable adviser. By combining strategic tax, pension, and trust planning, the business not only resolved a shareholder dispute but also created substantial long-term financial advantages. The use of a STEP-qualified adviser and a corporate-focused approach ensured compliance, efficiency, and alignment with the company’s growth ambitions — proving that expert, integrated advice can turn potential conflict into lasting success.