Yep. 100% understand the above. 'So while you can work out what...

  1. 169 Posts.
    Yep. 100% understand the above.

    'So while you can work out what the effective post-tax will be' (to me this sounds like what I want trying to achieve).

    There is one particular person who I want to 'step up' and start generating and implementing capital expenditure ideas for the company based on a % amount of the 'profits' (terrible descriptor I know) generated from the previous year.

    From their side they want to know what percentage of profit will be available each year to put back into the company. A bad habit of the trust (guilty as charged) in previous years is that too much has been distributed to beneficiaries rather than the business that actually generates the profits. They are prepared to commit long term to growing the company but want to know the framework for capital release and their remuneration.

    Trying to get a balance between stewardship theory (for them) but agency theory (for me) while maintaining the tax benefits of the trust.
 
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