Professional

The Background

• Doctor – Aged 45, Married, 2 Kids

• Sole Trader with profits of €150,000 – €200,000

• Recently purchased a new home, purchase price €1 million – Loan of €750,000

• Owns a practice premises on the High Street, prime location, value of €1+ million, which includes a small site with potential for an apartment, in own name with no borrowing

The Issues:

• Very large homeloan

• Not utilising significant commercial practice premises

• Cannot pay self rent for property he owns

The Solutions:

• Split portfolio between practice and site

• Sold property to his wife for €700,000

• No Capital Gains Tax or Stamp Duty

• Now charges rent to practice

• Created tax offset for practice

• Took out large portion €300,000 off homeloan and removed short term loans

• €300,000+ remaining tax free money for investment purposes

• Diversified from property into managed funds

The Alternative solution:

• To repay loan on a pension backed mortgage basis