A Family Investment Company is a private company, set up by a company director, to protect their family wealth, hold assets and mitigate tax within HMRC rules.
A Family Investment Company is set up similarly to any other company, but with different rules applied to ensure the company invests, as opposed to trades. It is also setup to the benefit of your family, although they do not make decisions; its setup is such that you are in total control.
Various rules and strategies dictate different ways in which the company works, saving tax and supporting innovative strategies, not suitable for implementation via your trading company.
Cash or assets can be transferred to, and held within a Family Investment Company. Any profits that are made are then liable for corporation tax, as opposed to capital gains or income tax, as would otherwise be the case. This alone, creates significant tax savings when compared with those of the individual. A Family Investment Company is at its most effective as part of a Lifetime Business Tax Plan, which can radically mitigate tax.
For business owners, the Family Investment Company is a more appealing alternative to a traditional trust arrangement, providing extensive flexibility and inheritance tax benefits. It is a tax-efficient way to protect wealth, hold assets and pass them down through the generations. It also simplifies succession.
A Family Investment Company allows you, the company director, to maintain full control. This is dictated by the way the company is set up. All decisions and control of the company are managed by you, for example paying dividends. This could be as a form of income or to other members of the Family Investment Company. Other members are not decision makers. The Family Investment Company is flexible, meaning that it can be tailored to meet your individual situation and altered with time, as necessary and as you decide.
If you are looking at purchasing a Buy-to-Let property portfolio then a Family Investment Company is the ideal vehicle. This puts your assets within a tax-efficient and ring-fenced environment, protecting you and your family from excessive tax implications. Business owners and their families can take advantage of property market growth, ensuring long-term advantages. This can also be coupled with a Small Self-Administered Scheme to further achieve tax efficiency, investment potential, and flexibility. Whilst you, the company director, retain control, should the worst happen you avoid leaving the extensive inheritance tax bill your family would be faced with, should you not have a Family Investment Company in place.
Recently been working with Tom at the Landlords Pension through a recommendation from a close friend. Tom is very knowledgeable and explained their services very clearly. Really helpful and friendly guy who immediately put me at ease. Always at the end of the phone or email ready to answer any questions I have.
Highly recommend The Landlords Pension for setting up a SSAS pension. Many Thanks to Liam, Michelle, Teresa and the team for their support throughout and making it an easy process. Looking forward to our working relationship with future investments.
Wouldn’t hesitate to recommend there services to open a SASS, massive thanks to Dan, Michelle and Teresa who made the setup seamless, very supportive throughout the whole process.
Look forward to many years of successful investments with The Landlords Pension
Highly recommend The Landlord’s Pension for opening a SSAS. They are highly professional yet friendly and personable. They are really helpful and keep you informed every step of the way. It’s refreshing to pay for a service by a company who actually do what they say they are going to, with zero aggravation and problems! Thank you guys 🙂
I recently opened my SSAS through The Landlord’s Pension and they have been professional, approachable and efficient throughout. Simon, Teresa and Michelle have all been great in answering my questions and queries and doing their best to ensure the process of transferring over my existing pension has been a smooth and seamless one. I would have no hesitation in recommending them.
I’ve been working with The Landlord’s Pension this year to sort out historically messy pension arrangements and take control by creating a Family SSAS. Chris Brown has been an absolute pleasure to deal with, friendly professional advice all the way through. Thanks!
We had a number of workplace and final salary pensions, dotted all over the place and decided to pull them all into one SSAS. Laura and the team were excellent in explaining what to expect and keeping us advised every step of the way, in fact as part of the fact-find, we came across pensions we didn’t realise we had! I manage my own SSAS, but I know that Laura is at the end of the phone if I need her and she will not hesitate to help. I couldn’t recommend The Landlord’s Pension enough, they were absolutely brilliant!
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