The following Private Client practice note produced in partnership with Deborah Clark of Mills and Reeve LLP provides comprehensive and up to date legal information covering:
Interest in the use of family investment companies (FICs) as an estate planning vehicle increased following the changes to the tax treatment of trusts that took place in 2006. Since then, the structure has become increasingly popular, especially as corporation tax rates have been reducing. As a result they are now widely used, but the term FIC is applied to many different types of structures, used for a wide variety of purposes.
This Practice Note does not consider the broader tax planning opportunities that may be associated with using a FIC.
A FIC is simply a company that has been established with the specific purpose of meeting the needs of, usually, a single family.
As the name suggests, a FIC is generally established to hold investments for the family but many of the principles can equally apply to a family trading company.
Investments can be in any form that a company is entitled to hold and would typically include property and/or equities.
It will normally have adopted bespoke articles of association that include restrictions on who can own shares and who can control the company.
It has no special status under the Companies Act 2006 (CA 2006) nor does it attract any special tax treatment.
Most FICs are incorporated in the UK and are tax resident here but some families may choose to incorporate offshore. This
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This Practice Note is an archive of news from the Loan Market Association (LMA) on LMA documentation and related topics. It covers LMA updates from early 2013 to January 2016. For the latest LMA developments since January 2016, see Practice Note: Loan Market Association (LMA)—latest news on
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