Personal Holding Companies: What
They Are and When They Help
A holding company can protect what you build.
Here is what it is, and when it actually helps.
By Andy Smith, Founder & Finance Director
A holding company can protect what you have built and give you more flexibility. It is not for everyone, but in the right situation it is powerful.
What it is
A company that owns the shares in your trading company or companies, rather than you owning them directly.
Why it can help
- ✓ Dividends passed up from the trading company to the holding company are usually tax free
- ✓ Ring-fence surplus cash and assets away from trading risk
- ✓ Flexibility for investment or holding property separately
- ✓ It can help on an eventual sale, subject to conditions
The catch
It adds cost and complexity, and it only makes sense in certain circumstances, typically where you have multiple businesses, surplus cash, or plans to invest or sell. It has to be set up properly.
General information, not personal advice. We will tell you honestly whether it is right for you.
We design and implement group structures the right way, and only when they genuinely benefit you.
