Family Investment Vehicles

    January 2014

    There is an increasing appetite for new vehicles to replace trust structures in family wealth planning as a result of the operation of IHT charges over trusts. The imposition of a 20% IHT charge on the transfer of assets into the trust, the ten-yearly charge over assets and a potential exit charge makes a trust unattractive. Accordingly, a Family Limited (Liability) Partnership (FLP) or a Family Investment Company (FIC) is worth considering as alternatives in succession and wealth planning (but it should be noted that these are not without their own limitations).

    This note briefly considers FICs and FLPs but specialist tax advice ought to be sought to really understand the complex tax implications of each option.