Thrive CMS Helps Business Customers
The service can be used to help maintain attractive tax reliefs.
It enables clients to mitigate Inheritance Tax (IHT) via Business Relief (BR) and reduce Capital Gains Tax (CGT) by utilising Entrepreneurs’ Relief (ER)
The Thrive Corporate Management Service (CMS) is designed for business customers. It enables them to put excess cash to work through direct lending activity to other small and medium-sized UK companies. The Thrive CMS also allows clients to maintain attractive tax reliefs.
Holding surplus cash in a business can lead to HMRC restricting the amount of Business Relief (BR) available to shareholders at death. However when the surplus is put to use via the Thrive CMS, through lending activities that should qualify for BR, this can help shareholders to mitigate IHT.
If shareholders sell shares or liquidate a company, they generally need to pay CGT on sales proceeds. Using ER can reduce tax payable by 10%. While surplus cash can lead to HMRC restricting the availability of ER, with it deployed into qualifying trades, this increases the availability of ER, potentially reducing CGT payable.
The Thrive CMS offers business customers a number of benefits:
- Enhanced returns: opportunity to deploy surplus cash for lending
- Tax benefits: Mitigate IHT through BR and use ER to reduce CGT
- Competitive return: targeting 4–7% p.a. net of all fees. No upper limit.
- Structured process: including plan, establishment, trading and reviews
- Security: underlying assets provide security and are transparently valued
- Bespoke service: a tailored solution is drawn from the bespoke plan
- Control: cash stays in the business so owners stay in control
- Ease of access: for exiting loans liquidity facilitated within 2-4 weeks
- Flexibility: Regular reviews, and can invest further amounts from £10,000
- Regulatory protection: the solution is classified as non-UCIS
The Thrive CMS is open to business customers who aim to make excess cash work harder from within their company, and to maintain tax reliefs. Blackfinch welcomes queries from advisers and customers.
Whether you have an initial query, a question on an investment, or would like to arrange a call or meeting, please feel free to get in touch.
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