Remuneration Planning For Shareholding Directors And Senior Executives

Our remuneration planning allows participators (i.e. business owners, shareholding directors, senior executives and/or key staff) to receive their non-contractual bonus awards through a tax efficient remuneration arrangement.

Their bonuses are paid into the specified sub-trusts for the benefit of themselves, their immediate families (parents, brothers, sisters, children and spouses) and registered charities. However, only the original participator can issue ‘Letters of Wishes’ recommending particular courses of action to the trustees. There are several options for funds within the Sub-Trust. These are:

• Investments (with gross roll-up for growth and foreign income)
• Loans – interest or non-interest baring
• Taxable emoluments

Payments made into these types of Trusts are usually made by directors, executives and key staff. There is normally a deferral of Income Tax and National Insurance until funds are withdrawn and remitted to the individual in the UK. However, loan planning does, in some instances, enable withdrawals without triggering an immediate taxable event. Loans can be subject to either a commercial rate of interest or a small P11D-Benefit in Kind (BIK) tax payment.

For a personalised illustration, please call us now on 020 7566 3792 or request a call back.

Devonshire Corporate Services LLP's range of services are not regulated by the Financial Services Authority (FSA) under the Financial Services & Markets Act 2000. Our recommendations and services do not include advice or brokerage in relation to regulated financial products, such as life assurance, pensions and investment products. These services can be provided by Kingston Smith Financial Advisers Ltd, an appointed representative of Argentis Financial Management Ltd which is authorised and regulated by the Financial Services Authority (FSA). The Financial Services Authority does not regulate some forms of buy to lets, commercial mortgages, tax advice, wills, trusts or certain offshore investments.