Family Investment Companies

Family investment companies (FIC) attempt to mirror the advantages of discretionary trusts and offer the founder a means to transfer value to other family members while still exercising an element of control. A family investment company is a flexible vehicle for managing family wealth and enables the tax-efficient accumulation and distribution of profits among family members. This makes them popular and worth exploring as part of your estate planning.

When a FIC is incorporated, shares can be gifted to family members without incurring any immediate charges on the basis that they have little or no value at the date of incorporation and therefore there are no concerns with capital gains tax. The gift of the shares will be treated as a potentially exempt transfer (PET) for inheritance tax and therefore outside the estate of the donor, provided they survive at least seven years. If the donor dies within seven years, it will be the value of the shares at the date of the gift, rather than at the date of death, that is brought into their estate and subject to inheritance tax.

Are family investment companies a replacement for trusts? A trust might be used to hold at least some of the shares in a family investment company. This can be especially attractive for creating a pot of income that might be used to provide distributions to family members who are not named shareholders of the family investment company.

A family investment company offers a flexible vehicle for managing family wealth and enables the tax-efficient accumulation and distribution of profits among family members.

Family Investment Company (“FIC”) – Signpost

Family Investment Company (“FIC”) – Signpost What is a FIC? Over the last few years, the Family Investment Company is becoming a relatively popular alternative to the more traditional trust 

Tax Hot Topics – Feedback from Accountex 2016

Tax hot topics Last week Enterprise Tax Centre was one of nearly 200 companies exhibiting at Accountex at Excel in London. We may well have seen some of you there! 

Seminar on Property Tax planning for investors, developers & everyone in between

Property Tax planning for investors, developers & everyone in between Thursday 24th March 2016 4.30pm-5.30pm Great John Street Hotel, Great John Street, Manchester, M3 4FD Seminar Good afternoon, I’d like 

What we do and what we’re trying to achieve…

Introduction I am often asked what it is we do at Enterprise Tax Centre (“ETC”). This might appear to be a silly question. Most of the population can probably hazard a 

Related Services