If you have fully utilised your pension saving allowances, exhausted your trust planning opportunities but still want to be able to plan for the future in a tax efficient manner what else can be done?
A family investment company (FIC) is a corporate structure that enables wealth to be passed on to
future generations in a tax efficient way, while providing the “founders” with total control over
investment decisions.
FICs are taxed in the same way as other UK companies and pay corporation tax on their annual
income and gains, deferring any further tax until profits are extracted from the company.
It is important that a FIC is structured correctly and if done properly it can be used mitigate tax expsoure on investment income, distribute reserves to family members tax efficiently and divest wealth to family members as part of your Inheritance Tax planning strategy.
If you would like advice and assistance in establishing a Family Investment Company please contact us.
