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& self-administered pensions
The need
You may be:
- An active investor wishing to invest in property or other assets in a tax-efficient manner.
- A regular tax-payer interested in using tax-shelter-type investments to reduce your tax bill.
- A developer or promoter of a project wishing to use tax-based funding as a springboard for your project.
Apart from top class tax advice, tax-based financing requires:
- Structuring a deal once the tax issues have been identified.
- Devising innovative financing methods to permit a tax plan to be implemented.
- Unravelling and developing existing structures to take account of changing requirements.
- Presenting complex structures to principals and associated parties, in
clear and simple language, and in a professional manner.
- Negotiating with other parties where consent is required for change.
- We have unrivalled experience which is available to you. We have assembled numerous investments through capital allowance partnerships, lease-buy/put-and-call structures, BES schemes and lately, self administered pensions.
For over ten years, tax-based investment has hugely benefited entrepreneurs and ordinary taxpayers. This type of investment has driven the huge improvement in infrastructure in various sectors of the economy (including tourism and healthcare). There has been a very significant net contribution to the Exchequer as a direct result of the various targeted relief’s available. It continues to be very effective, especially when applied to activities and locations that suffer from investor scepticism.
Only pensions, BES and a small number of specialised property investments still give tax breaks against all income. But there are still significant tax breaks available against corporate and rental income. Many taxpayers could consider a re-organisation of their affairs to permit them to participate in such schemes.
Every year, we arrange a number of tax-based investments for our clients. To date, we have arranged over 40 investor groups to invest in hotels, car parks, crèches, nursing homes, industrial, commercial, office and retail buildings. We also select a number of BES opportunities each year for our clients. Previous BES investments range from advanced factories to technology companies.
Horwath Bastow Charleton Limerick are industry leaders in tax-based fundraising. We at Horwath Bastow Charleton Limerick offer access to prize-winning tax practitioners and accountants. No matter how simple or complex a solution you require we guarantee an expert and professional service. In the last five years we have raised in excess of €120 million for developments from Donegal to West Cork and over to Dublin. We have put together more than 40 investor consortia which have yielded exceptional returns to investors.
For too long people have been at the mercy of global fund managers and stock market performance. Little or no regard was given to an individual’s ability to manage their own investments.
The advent of self-directed pension schemes has changed the landscape for pension investment.
Company Directors and key employees may now take direct control of how their pensions are invested.
Self directed trusts can be set up to facilitate contributions by a director/employee to their individual schemes. The trusts have proved an excellent tax-planning opportunity for directors/employees interested in acquiring investment property. Contributions can be made gross to an individual’s trust to fund a property purchase through the trust.
This compares favourably with the after-tax income available to an individual for property investment when monies are extracted through salary.
In addition, rental income receivable in the fund can be
received tax –free.
The combined effect of ‘gross investment’ and ‘tax-free’ growth makes property investment through pensions far more attractive than ‘stand-alone’ investment.
An individual can elect for early retirement from age 50. A 25% tax free lump sum can be taken on retirement.
There is ample opportunity for succession planning in relation to the dispersement of residual funds on a death.
Horwath Bastow Charleton has extensive experience in the structuring of property investments through pensions, having facilitated 5 such schemes in the first two months of 2005 alone.
It is only in preparing comprehensive financial projections, models and deal sheets that a conclusion can be reached and we have unrivalled resources in this area. We at Horwath Bastow Charleton Limerick can offer a range of financial modelling methodologies and innovative structures developed over almost ten years of putting deals together. We carry out rigorous financial analysis with great attention to detail to ensure the desired outcome is in fact achieved. We find innovative ways of achieving a client’s goal.
We look at the cash flow benefits of an investment
in the context of:
- Return on the cash investment (IRR)
- The level of debt to which you are exposed
- The commitment of guarantees or personal security
- The security offered to you as an investor
- The division of the benefits between the investor and the promoter.
In order to maximise your gain from an investment or your benefit from using tax-based finance, you need an advisor who evaluates investments on a case-by-case basis.
One with sufficient tax expertise to make complex tax structures work, but who is primarily a corporate financier. An advisor who aims to put together prudent investment structures, who can make commercial sense of opportunities and who can see beyond the tax saving. Only an experienced, multi-discpilinary team like that at Horwath Bastow Charleton Limerick can deliver against all the requirements.
In the area of pensions, Horwath Bastow Charleton Limerick will meet clients on an individual basis and assist that individual in assessing the benefits of using a pension trust, the maximum contributions which can be made and the need if any for additional borrowing in the trust.
Consideration will also be given to the individual’s marital status and the need, if any, for some degree of succession planning.
In addition, Horwath Bastow Charleton Limerick have developed key contacts in banking circles which have experience in providing funds to pension trusts wishing to borrow to acquire investment property.
We have a transparent fee structure in establishing and advising on such structures.
At Horwath Bastow Charleton Limerick, we pride ourselves in delivering innovative and creative solutions to a range of clients. In particular, you are dealing with a firm which:
- Advises you through the very complex process of arranging tax-based finance.
- Project manages the whole tax-based funding process for you.
- Finds the long term and development banking facilities that will enable your project to get off the ground.
- Analyses the strengths of the project for presentation to bankers and investors.
- Sources and recommends a suitable tax-break for an individual.
- Sources and manages investor groupings for all types of tax-based investment vehicles.
- Disentangles and restructures complex structures when required.
- Project manages and carefully structures pension schemes to maximise the benefit for property investment.
Top of Page
For more information on Tax Consulting please email:
| Mary McKeogh | E: mmckeogh@hbcl.ie |
| Ger Blake | E: gblake@hbcl.ie |
| Pat Sheehan | E: psheehan@hbcl.ie |
| Pat Jones | E: pjones@hbcl.ie |
Horwath House, The Red Church, Henry St., Limerick, Ireland
T: + 353 (61) 310 311 F: + 353 (61) 31 88 99 E: Mail Addresses
Authorised by the Institute of Chartered Accountants in Ireland to carry on investment business.