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With property prices remaining high and inheritance tax (IHT) thresholds frozen, accountants and tax advisers are increasingly being asked how clients can hold and pass on property wealth in a tax-efficient way. Family Investment Companies (FICs) have emerged as a powerful and flexible planning tool, yet many practitioners remain uncertain about how they work in a property context and when they are appropriate to use. 

This course provides accountants with a clear, practical understanding of how FICs can be used to hold property portfolios, the tax consequences of incorporating existing property into a FIC structure, and how such arrangements can form part of a broader estate planning strategy for clients. Attending will help practitioners identify planning opportunities for property-owning clients and add real value to their advisory offering.

In this course Nick Wright covers the following topics:

• What is a Family Investment Company? - the structure, how it works, and why it is increasingly used as an alternative to trusts for holding family wealth, including property assets
• Property ownership through a FIC - the tax treatment of holding residential and commercial property within a FIC, including corporation tax, SDLT, ATED and income tax considerations
• Incorporating an existing property portfolio into a FIC - the key tax issues on transfer, including capital gains tax (including incorporation relief), SDLT implications and mortgage/lending considerations
• Estate planning with FICs - how FICs can be used to pass value to the next generation outside of the estate, the use of different share classes, and the IHT treatment of FIC shares
• Practical considerations and pitfalls- when a FIC works well and when it does not, HMRC's current approach, and how to advise clients on whether this structure is right for them