Way OT: Family Investment Companies

[Myfordman]

Has anyone looked into setting up a "Family Investment Company" and prepared to discuss experiences please?

TIA

Bob

 

[Flynnwood]

Not sure what you mean by "Family Investment Company"?

More info ?

 

[Myfordman]

Hi Flynnwood,

It is a specialised investment vehicle and not trying to offend but if you don't know what it is then you are not likely to be able to help me.

Googling for those words will possibly give you an idea of the scope of these.

KRs

Bob

 

[RogerS]

I had to Google it but it does make sense.

I'd be very concerned about the political uncertainty in the UK and the long term prospects of such an elegant solution.

 

[bugbear]

I had to Google it but it does make sense.

I'd be very concerned about the political uncertainty in the UK and the long term prospects of such an elegant solution.

HMRC does tend to (eventually) SHUT tax-efficient loop holes like this.

BugBear

 

[RogerS]

I had to Google it but it does make sense.

I'd be very concerned about the political uncertainty in the UK and the long term prospects of such an elegant solution.

HMRC does tend to (eventually) SHUT tax-efficient loop holes like this.

BugBear

I wasn't thinking about HMRC as they only act out what has been determined by Parliament.

But we are going OT

 

[Myfordman]

I had to Google it but it does make sense.

I'd be very concerned about the political uncertainty in the UK and the long term prospects of such an elegant solution.

HMRC does tend to (eventually) SHUT tax-efficient loop holes like this.

BugBear

I wasn't thinking about HMRC as they only act out what has been determined by Parliament.

But we are going OT

Indeed we are.

Normally to set up a company one goes to an accountant as the process is straightforward and just a handle turning exercise but in the case of FIC, the articles of association and memorandum of understanding need to be specific to the needs of the FIC and so boiler plate text is not likely to fit the bill.
I'm unsure whether I should go to an IFA, a solicitor or a tax specialist hence wanting to talk with someone who has been through the process.

Bob

 

[finneyb]

Interesting thread - I have an awareness but no experience of FIC.

What I don't understand is how can a company be set up without an objective ie to make widgets, deliver a service etc.
OK, its an investment company but that assumes it must make investments eg buy/sell property; develop brown field sites etc as I see it just holds assets and does no ore than an individual would do.

Googling shows that both accountants and solicitors work in this area eg Grant Thornton - Wright Hassell but I have no knowledge of either or others.

Brian

 

[Myfordman]

I feel it is reasonable to set up a company for the purpose of managing property - which is my intention - as there are advantages of ring fencing your business from your personal finances.

I tend to agree that having an FIC purely to wrap stocks and shares OIECS etc is a bit peculiar and more a deliberate way to exploit the rules.

I had to have a chortle when I came across the name of Wright-Hassell!!

Bob

 

[Flynnwood]

I feel it is reasonable to set up a company for the purpose of managing property - which is my intention - as there are advantages of ring fencing your business from your personal finances.

I tend to agree that having an FIC purely to wrap stocks and shares OIECS etc is a bit peculiar and more a deliberate way to exploit the rules.

I had to have a chortle when I came across the name of Wright-Hassell!!

Bob

Bob - I didn't google it simply because I wondered what it was you intended to invest in.

Now you have mentioned managing property and not stocks (and the murky world of same), you might try ukbusinessforums dot co dot uk in relation to FIC's. From memory that forum has a following of accountants iirc. Might be of help?

All the best.

 

[Myfordman]

Thanks Brian,

I'll take a look

Bob

 

[Flynnwood]

Thanks Brian,

I'll take a look

Bob

I'm not Brian, I'm Flynnwood :ho2

 

[Myfordman]

Thanks Brian,

I'll take a look

Bob

I'm not Brian, I'm Flynnwood :ho2

Many apologies Flynnwood. Its my birthday today and maybe too many glasses taken lol

Bob

 

[Newbie_Neil]

Its my birthday today. Bob

A bit late in the day, but ccasion4:

Neil

 

[Myfordman]

Thank you Neil.

 

[Alexam]

Are you thinking about family Trusts to shelter assets for the family in years to come.? Various Trust schemes are available if this is what you had in mind, chat, but not too many financial advisers are tuned into this as it is a specialist area
Malcolm

 

[Myfordman]

Hi Malcolm.
From googling, my understanding is that FICs are different from trusts but aim to have a similar effect.

e.g. http://www.grantthornton.co.uk/insights ... tance-tax/

Bob

 

[Alexam]

Certain Trusts can be set up to pass on to future generations and keeping it in the family is best rather than having outside Trustees. The smart ones do not generate income, but growth within the Trust as income is taxable at higher rates. Depending on how they are set up, the Trustees control how they are managed. FIC are not something I am familiar with but other Trusts are and I have helped set these up in the past, when authorised to do so and for myself, as I know how these work.

As mentioned, it is a very small area that is a minefield, so be very careful and never move quickly as you could regret it and do watch out for excessive charges. Taxes and responsibilities must be understood by all before entering this area and what may be available now, may not be in the future.
Malcolm

 

[Losos]

and what may be available now, may not be in the future.

I would certainly agree with that statement. It seems to me that with the ever increasing population the government (Whichever party they are) keeps bearing down on anyone who has worked hard and saved.

These days if you've been able (through hard work and modest living) to accumulate some savings then this will be redistributed to the 'have nots' by HMRC and other authoritarian government departments.

You pay tax on your earnings, you pay tax again when it is in a savings account, and you pay a third time when it is deemed your savings are too big.

 

[Alexam]

That is unless you do something about it. Everyone has the opportunity to take action to save tax. Even though tax rules may change in the future and may stop future investments, retrospective changes are most unlikely, so early action could save a great deal.