The Main Benefits of an FIC
One of the main benefits of using an FIC is the potential to reduce the tax paid on wealth passed down to future generations. In the UK, inheritance tax is levied on the value of an estate above a certain threshold (currently £325,000). Using an FIC, it is possible to structure the ownership and distribution of assets to minimise the amount of tax payable.
There are several other considerations to bear in mind when setting up and operating an FIC. For example, ensuring that the company is appropriately structured and governed and that any investments made are consistent with the family’s long-term goals and risk appetite is essential.
Summary
In summary, a family investment company can be a valuable tool for managing and investing family wealth in the UK, providing flexibility, control, and the potential for tax efficiency. However, it is crucial to seek professional advice and ensure that the company is set up and operated in a way that meets the family’s needs and complies with relevant laws and regulations.
