Covers the key issues to consider when exploring if a Family Investment Company is an appropriate vehicle to help with an individuals estate planning.
An updated version of the Tax Insight on Family Investment Companies published in 2019. Written by an acknowledged expert in this field, Deborah Clark of Mills and Reeve, this publication explores what makes a company a FIC, considers how a company works and the potential ways to make them more bespoke.
A Family Investment Company (FIC) is a bespoke vehicle which can be used as an alternative to a family trust. It is a private company whose shareholders are family members. A FIC enables parents to retain control over assets whilst accumulating wealth in a tax efficient manner and facilitating future succession planning.
The commentary covers issues on how to fund the structure, what tax issues to watch out for, what rights you might give to the shares and the pros and cons of different choices. It deals with directors' powers, the use of an unlimited company and issues around privacy and wealth protection. Different structures are explained and their benefits and disadvantages highlighted.
The commentary is bought up to to date with the new corporation tax rates and dividend tax rates introduced since the previous edition was published. It also reflects the author's continued practical experience in dealing with clients in this area.
New features include: - a new chapter on Estate Planning Benefits - a new chapter on Treatment on Divorce - enhanced coverage of redeemable preference shares in the chapter on share capital - an expanded shareholders agreement chapter to include more information on what should be included in the agreement - a new chapter on share valuations - a new chapter on accounts preparation for Family Investment Companies
The guidance given is supplemented by examples and diagrams to helpfully illustrate the concepts described.
Read an extract of Family Investment Companies - 2nd edition
Table of Contents
Preface 1. Introduction 2. Articles of Association 3. Directors 4. Share capital 5. Share Valuations 6. Share Transfers 7 Shareholders Agreement 8. Governance 9. Employees 10. Taxation 11. Dividends – general 12. Dividends – shareholder position 13. Dividends: Settlements legislation 14. Funding a FIC 15. FIC or Discretionary settlement? 16. Other tax issues 17. Estate Planning Benefits 18. Use of Trusts 19. Treatment on Divorce 20. Unlimited Companies and Privacy 21. Winding up a FIC 22. Example structures 23. Accounts