Case Studies

Alternative Tax Efficient Pension Plans

This involves operating your business through a company which builds up retained profits over time.

This creates a personal saving investment vehicle in a tax efficient manner and avoids the restrictions on pension funding.

Reduced level of taxation from 55% to 20% for profits left in the business.

Possibility of using this investment structure to pay off personal bank loans in a tax efficient manner.

It could be particularly useful for medical practitioners who can now incorporate their practice.


Structure For Creating Alternative Pension Fund Other Benefits
(e.g. when pension cap exceeded)
1) Business carried on via limited company 1. On death, spouse can take out accumulated funds tax free
2) Business has good profits 2. On retirement can take out the accumulated funds under capital gains tax rules
3) Can save gross 200k per annum 3. Control over tax payments for sale of business at a later date
Company carries on the business
*Annual profits € 200,000
Pays Corporation tax € 40,000
After tax € 160,000
Annual savings € 160,000
After 6.25 years € 1,000,000
Plus investment return after tax say € 20,000
Retained profits after 6.25 years € 1,020,000
*After all costs including directors salaries
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