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Collect unlimited free verifiable CPD for UK Dentists here >>> https://www.dentistswhoinvest.com/videos/how-to-efficiently-extract-wealth-from-your-limited-company-with-david-hossein

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Unlocking the financial potential of your dental limited company requires strategic thinking beyond basic salary and dividend planning. In this comprehensive exploration of wealth extraction strategies, specialist dental accountant David Hossein and I delve into the challenge many dentists face: substantial cash reserves effectively "stranded" in their companies due to tax considerations.

The podcast begins by examining the fundamental tax benefits of operating through a limited company – the ability to control income extraction and thereby manage personal tax exposure. This advantage, available to dentists since 2006, creates the common situation where cash accumulates within the company structure. Rather than seeing this as a problem, we reframe it as an opportunity for strategic financial planning.

For associates, we discuss the critical threshold of £100,000 personal income that preserves your tax-free personal allowance, alongside comprehensive business expense planning. Many dentists miss legitimate claims for items like protective clothing, business travel, mobile phones, and CPD courses (even those in exotic locations, with important caveats!). We examine how family involvement through employment or shareholding can distribute income more efficiently, and explore the tax benefits of company-provided assets like electric vehicles and bicycles.

Property investment emerges as a major wealth-building strategy, with corporate structures offering significant advantages over personal ownership – particularly regarding mortgage interest relief. David explains the ideal setup using separate special purpose vehicles, inter-company loans, and even introduces the powerful concept of "growth shares" that can pass future value appreciation to children without inheritance tax implications.

For practice owners contemplating sale, we outline the vital tax considerations around Business Asset Disposal Relief (with rates increasing from 14% to 18% in April 2024) and the zero-rate Substantial Shareholding Exemption for reinvestment scenarios. The discussion includes practical advice on holding company structures and timing considerations for maximum tax efficiency.

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Disclaimer: All content on this channel is for education purposes only and does not constitute an investment recommendation or individual financial advice. For that, you should speak to a regulated, independent professional. The value of investments and the income from them can go down as well as up, so you may get back less than you invest. The views expressed on this channel may no longer be current. The information provided is not a personal recommendation for any particular investment. Tax treatment depends on individual circumstances and all tax rules may change in the future. If you are unsure about the suitability of an investment, you should speak to a regulated, independent professional. Investment figures quoted refer to simulated past performance and that past performance is not a reliable indicator of future results/performance.

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