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Post by ladywhitenap on Nov 23, 2017 21:32:10 GMT
Has anyone been through the process of setting up a FIC to shelter investment gains from IHT?
I've been thinking about this as a wrapper for future buy to let purchases.
Any info on your experiences gratefully received.
LW
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locutus
Member of DD Central
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Post by locutus on Nov 23, 2017 22:19:39 GMT
For those unaware, a Family Investment Company is simply a non-trading limited or unlimited company registered in England or Wales but used to hold personal investments by proxy. There are lots of benefits but the main one is paying CT instead of IT and be able to time how you withdraw money to make it more tax efficient.
Variations of this conversation come up all the time and the benefits and drawbacks of a FIC are no different to the ones for any Limited company. Essentially, the admin and overhead are not really worth it unless you're talking about significant amounts of capital.
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Post by ladywhitenap on Nov 23, 2017 22:35:53 GMT
Thanks for your reply. My IHT liability now would be around £600k. I'm about to invest in BTL property and feel I might just as well work through a FIC as not
I'm trying to find the best type of organisation to advise and set one up for me. Should I consult
Solicitors
IFAs
Tax advisors
Accountants
etc?
LW
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locutus
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Post by locutus on Nov 23, 2017 22:41:06 GMT
You need a tax advisor to set it up for you properly. Expect to pay £5k-£10k to get it done properly. They will try and charge you an annual fee too but by that time, you can hand it over to an accountant who will be much cheaper. I'll PM you.
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gb007
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Post by gb007 on Nov 25, 2017 23:02:51 GMT
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