Turning your business into lasting personal wealth
Business owners face financial planning challenges that employed people do not. Your personal wealth, your business assets and your future are intertwined in ways that require joined-up thinking. Aetas Wealth works with business owners to align their commercial goals with their personal financial plan - from extracting income efficiently to exiting on their own terms.
Most business owners leave wealth on the table.
Not through poor trading decisions, but through the gap between their business plan and their personal financial plan. Income extraction, pension funding, Business Relief, key person cover and exit planning all interact with each other - and with the tax system - in ways that most business owners never model properly.
The Finance Act 2026 changes to pension inheritance tax, and the Budget 2024 changes to Business Relief, have made this planning more urgent and more complex than it was two years ago.
The window for making the most efficient decisions is not indefinite. Tax rules, business valuations and personal circumstances all shift. Planning that begins early gives business owners significantly more control over the outcome.
Where we focus for business owners.
The areas where personal and business planning must work together.
Income extraction and tax efficiency
Salary, dividends, pension contributions and director loans all have different tax treatments. The optimal mix depends on your corporation tax position, personal income, pension funding objectives and whether you have other shareholders. We model the efficient structure for your specific situation rather than applying a generic rule.
Pension planning for business owners
Business owners often have more flexibility to fund pensions than employed individuals, and more to gain from doing so. Employer contributions from your company can be highly tax-efficient. With the Finance Act 2026 changes bringing pensions into inheritance tax from April 2027, the strategy around pension funding also needs to reflect your estate planning objectives.
Exit and succession planning
Whether you plan to sell, hand over to family or wind down over time, the financial outcome of your exit depends heavily on decisions made years before it happens. Business Asset Disposal Relief, Business Relief, earn-out structures and the timing of transactions all affect how much of your business value converts into personal wealth.
Business Relief and estate planning
Business assets that qualify for Business Relief can pass free of inheritance tax - but the rules changed in April 2026, introducing a £1 million cap above which only 50% relief applies. If business assets form a significant part of your estate, the planning around Business Relief needs to be reviewed in light of the new rules.
Key person and shareholder protection
What happens to your business if you or a fellow shareholder dies or is seriously ill? Shareholder protection ensures your co-owners can buy out a deceased shareholder's family rather than finding themselves in business with people who were never part of the plan. Key person cover protects the business from the financial impact of losing a critical individual.
Personal financial planning alongside the business
Many business owners invest heavily in the business and comparatively little in personal assets outside it. Building a portfolio of ISA, pension, GIA and property alongside your business interest reduces concentration risk and gives you more options when it comes to exit or retirement.
Recent tax changes affect every business owner's plan.
Two significant changes have reshaped the landscape for business owner financial planning since 2024. The first is the reduction of Business Relief from 100% to 50% above a £1 million threshold, effective from April 2026. The second is the inclusion of unspent pension funds within the scope of inheritance tax at 40%, effective from April 2027.
For business owners whose estate includes both business assets and pension funds, these changes interact. An estate that previously passed largely free of inheritance tax through a combination of Business Relief and pension exemption may now face a substantial charge. The earlier this is modelled, the more options are available to structure around it.
Income extraction strategy also needs revisiting. If pension contributions are no longer as effective as an IHT shelter, the relative merits of salary, dividend and pension funding shift. This is not a reason to stop contributing to a pension - pensions remain one of the most tax-efficient structures available - but it changes the strategy around how much to fund and when.
Aetas Wealth advises business owners across a range of sectors and structures. If you have not reviewed your income extraction, pension and estate planning in light of the 2024 and 2026 tax changes, a conversation with one of our advisers is the right starting point.
Questions we hear most often from business owners.
What is the most tax-efficient way to take money out of my company?
The answer depends on your personal income, pension funding objectives, corporation tax rate and whether you have other shareholders. A combination of salary to the National Insurance threshold, dividends up to the basic rate band and employer pension contributions is often efficient - but the optimal split varies considerably by individual. This is one of the highest-value planning decisions for owner-directors and is worth modelling properly each year.
How does Business Relief work after the 2026 changes?
Business Relief allows qualifying business assets to pass free of inheritance tax on death. From April 2026, the relief is capped at £1 million at 100%, with a 50% relief applying above that. For business owners with significant business value, this means that a proportion of their estate that previously passed tax-free will now face an inheritance tax charge. Planning around Business Relief - including the use of trusts and the timing of asset transfers - becomes more important as a result.
When should I start thinking about exit planning?
Earlier than most business owners do. Business Asset Disposal Relief, which reduces capital gains tax on qualifying business disposals to 10% up to the £1 million lifetime limit, requires careful structuring in advance. Earn-out arrangements, deferred consideration and the use of pension contributions in the years before exit all affect how much of your sale proceeds you retain. Leaving exit planning until the deal is on the table significantly reduces your options.
Should I hold investments personally or through my company?
This depends on whether you need the income now, your corporation tax rate, and your longer-term plans for the company. Holding investments through the company can be efficient if the funds are not needed personally in the near term, but it affects Business Relief eligibility and introduces complications on exit. Personal wrappers - pension, ISA, GIA - offer more flexibility and are generally preferable for long-term wealth building outside the business.
Read our companion guide: Inheritance tax planning options: a practical guide for business owners and families.
Make sure your business and personal plans are working together.
A first conversation with Aetas Wealth costs nothing and commits you to nothing. We will look at your situation honestly, tell you what we think, and let you decide whether working together makes sense.
Book a free consultation Available via video call or in person. We work with clients across the UK.The value of investments and any income from them can fall as well as rise. You may get back less than you originally invested. Past performance is not a reliable guide to future performance. The levels and bases of taxation may also change.
The information contained above is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.