A Guide to Succession Planning & Family Investment Companies

Introduction

While trusts have been a staple for succession and inheritance tax planning for many years they are increasingly out of favour with some clients because of the perceived complexity and tax concerns.

As a result, family investment companies (FICs) have become a real alternative where control can be separated from ownership.

This live virtual classroom session will cover the differences between these two alternatives and a set of default criteria to consider in any succession planning exercise.

What You Will Learn

This live and interactive session will cover the following:

• Is there CGT and IHT on a transfer of assets to a trust?
• Do investment properties in a trading business attract business property relief?
• What right should attach to ‘golden’ shares?
• Why so few family businesses pass to the 3rd generation
• A set of default criteria to consider which may give the best chance of successful succession planning
• A methodology to get ‘buy-in’ to succession and IHT planning
• The constituents of a typical suite of family and company governance documents
• Tax treatment of trusts owning companies
• CGT on placing assets into a trust and exemptions available
• IHT issues on placing assets into a trust
• The 6% ten year IHT charge and how that works
• The availability of BPR for IHT
• BPR ‘traps’
• Incorporation of family assets into a limited company
• CGT & IHT and SDLT on incorporation
• The difference between and relevance of ‘investments’, ‘business’ and ‘trade’ for CGT, IHT and SDLT
• A typical shareholding structure in an FIC
• The legal documentation involved

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.