Family Investment Companies - 2nd edition

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.

List 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

About the author

Deborah Clark is a Partner at Mills & Reeve LLP, Solicitors. She specialises in private client work, advising clients on all aspects of estate planning and wealth protection. Deborah is recognised as an expert on FICs, having been advising on the design and use of them for estate planning purposes for over a decade. Deborah is recognised as a ranked individual in Chambers & Partners. She regularly lectures on the use and design of FICs and is a Barrister, Chartered Tax Adviser and TEP.

Summary

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.

Product details

• Authors: Deborah Clark
• Publisher: Bloomsbury Academic
• Languages: English
• Product format: Paperback / Softback
• Released: 27.06.2024
• EAN: 9781526524690
• ISBN: 978-1-5265-2469-0
• No. of pages: 88
• Dimensions: 204 mm x 292 mm x 16 mm
• Weight: 260 g
• Subjects: Guides > Law, job, finance > Taxes; LAW / Taxation, LAW / Estates & Trusts, BUSINESS & ECONOMICS / Personal Finance / Taxation, Taxation, Personal tax