But if it’s poorly planned it could waste a lot of well-earned money. We spoke to AES financial expert Russell Hammond, about how to do it right…
SME owners spend years pouring their energy into building businesses, but when it comes to structuring their finances, too many leave things to chance or plan too late.
And that, argues Russell Hammond, senior partner of wealth management and financial advice specialist AES, can be a costly mistake.
He believes aligning business growth with personal wealth is essential, as is preparing for exit or relocation, and avoiding the traps that come from fragmented advice.
“Many SME owners are so focused on building the business that everything else takes a back seat – including making smart investment and financial planning decisions, he says.
“It’s understandable, because running a company can consume all your energy and attention. But without a clear plan for how profits are extracted, invested, and protected, you risk working incredibly hard without securing your own financial future. This is especially true as UK and international tax rules shift – structures and strategies that worked a few years ago might now be inefficient, or even create unnecessary liabilities. Aligning business growth with personal wealth planning is key to making sure the effort you put in translates into lasting security.”
Timing the exit strategy
Timing is everything, he says. And planning for your exit strategy in advance, rather than when you’re ready to sell up.
Doing so gives you time to make use of reliefs, optimise how the sale is structured, and position the proceeds in highly tax-efficient investment vehicles that give you control over when and how you draw income.
“For those relocating overseas, the sequence of events matters just as much. Moving at the wrong point in the tax year, or without adjusting how assets are held, can create unnecessary charges. With the right plan, you can arrive fully structured for both your new tax regime and any potential return to the UK, giving you flexibility for years to come.”
One of the biggest mistakes is making decisions in isolation. Someone might optimise for UK tax without realising it creates a liability overseas, or vice versa.
“I’ve seen people move assets into trusts or companies that worked perfectly under one set of rules, only for them to become inefficient or even disadvantageous under another, says Hammond.
“Another common error is selling a business or property without thinking about how the proceeds will be invested, and missing out on tax-efficient wrappers that could provide far more control over income and gains. Without joined-up, cross-border advice, it’s all too easy to end up paying tax twice, or trapped in structures that are costly to unwind.”
It starts with understanding where you are now, and where you might be in five or ten years.
“I worked with a client recently who had pensions in three different countries, investment accounts in two more, and no clear view of how it all fitted together. We mapped everything out, reviewed the tax treatment in each jurisdiction, and then restructured so their assets worked in harmony no matter where they lived. Often, that means making use of geographically portable, tax-neutral solutions – such as international wrap accounts offered by global private banks – which allow you to consolidate wealth, manage it under one roof, and control the timing of taxable events. The aim is to build something efficient, adaptable, and border-agnostic, so they can focus on their career or business without worrying that the next move will trigger a tax headache.”
Joining the dots
The problem is often one of too many cooks, he argues. A mix of accountants, financial advisors and solicitors looking after different elements, leads to disarray and a lack of strategy.
“That’s where mistakes creep in, because decisions in one area can have unintended consequences in another. Our approach is to bring all those strands together, so tax planning, investments, pensions, and estate planning are all pulling in the same direction. It means clients can make confident decisions knowing everything has been considered as part of a bigger picture, rather than pieced together reactively.”
For many SME owners, the business is their biggest asset, and often their legacy. But without careful inheritance tax planning, a large share of that value can be lost to HMRC rather than passed on to the next generation.
“We work with clients to structure ownership, investments, and personal wealth so they can transfer assets efficiently, whether that’s through trusts, family investment companies, or other tailored strategies,” he explains.
“It’s not just about reducing the tax bill – it’s about making sure the wealth they’ve worked so hard to build stays intact and benefits the people and causes that matter to them.”
“Ideally, succession or exit planning should start years before you actually need it. Too many owners only think about it when a sale is on the horizon, by which time some of the most valuable planning opportunities have already been missed. Early planning gives you time to consider options such as a family investment company, an appropriately structured trust, or a holding company – each of which can help reduce tax, protect assets, and make the transition smoother.
“It also means you can align your personal wealth planning with the business strategy, so when the day comes, you’re not just selling a company – you’re securing your own financial future and your family’s.”
Chartered expertise
Hammond’s resume gives him cast-iron credentials across a number of financial areas, which means he can offer the joined-up advice that’s needed to successfully realise the full potential of assets.
“Holding Chartered Fellow status with both the CII and CISI means I’ve reached the highest level of professional qualification in both financial planning and investment management. In practice, it allows me to bridge the gap between the two disciplines – combining detailed technical knowledge of pensions, tax, and estate planning with the ability to design and manage sophisticated investment strategies.
“Clients get advice that’s both comprehensive and cohesive, rather than having to piece it together from separate specialists. It also gives them confidence that the guidance they’re receiving is grounded in the highest professional and ethical standards.”
Knowledge of both the UK and international tax and investment laws can be invaluable in realising the full potential of the sale of a business and its impact on personal wealth.
“One of the biggest risks is assuming that what works well in the UK will work just as well overseas. Different countries have very different tax treatments for income, gains, and inheritance, and some don’t recognise UK tax wrappers at all. That can lead to unexpected bills, double taxation, or assets being caught by foreign probate or forced-heirship rules. I’ve also seen people hold investments through structures that are perfectly fine in one jurisdiction but disadvantaged in another. The key is to get advice before making the investment or moving the asset – it’s much easier to structure things correctly from the outset than to fix costly mistakes later.”
The right process
The AES process starts with understanding that a business and its owner’s personal finances are deeply connected – decisions in one almost always affect the other.
“We look at the whole picture: how profits are extracted, how they’re invested, and how both the business and personal wealth are protected. That might mean restructuring ownership to improve tax efficiency, using the right investment vehicles to grow surplus capital, or putting estate plans in place so the value they’ve built is preserved for the future. The aim is to turn hard-earned business success into lasting personal security and freedom of choice.”
If you’re looking for the exit door soon or in the future, a quick look up from the day to day to have that conversation might be worth a lot in the long run.
For those who’d like to discuss their own plans directly, Russell can be reached by email, or you can book a meeting with him here. More information is also available on the AESadviser website.
