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.

The session will include case studies and virtual break out rooms.

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.