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This is because of the more beneficial corporation tax rates which a company pays, compared to the trust income tax rates.

FICS can be used alongside trusts or on their own, as a tax efficient way of protecting assets and passing wealth on to family members. We are able to advise on whether a FIC may be right for your circumstances and how these structures work.

A FIC is essentially a UK resident company, whose shareholders are various family members, and sometimes family trusts. Our specialist team work with tax advisors to establish the best structure for you to use, taking into account your circumstances.

The FIC can be set up as an unlimited or limited company and we can advise you on the right approach for you. Usually, the founder of the FIC will either gift or loan assets to the company and the family members, including the founder, will receive shares in the FIC. Different classes of share can be issued to create flexibility as to (a) distribution of income and assets and (b) retention of control of the FIC by the founder. It is therefore vital that the FIC has a detailed shareholders agreement and/or articles of association to provide for this flexibility and control, as well as to ensure shareholders are only family members.

The assets introduced will usually be non-business related assets and can include cash, property, equity securities (i.e. shares), artwork and even classic cars.

There are a number of benefits that an FIC can provide over other tax planning vehicles, including:

  • Cash transferred into the FIC would be transferred tax-free;
  • There will be no immediate charge to IHT in relation to any gift made into the FIC provided that the person making the gift survives 7 years;
  • The founder retains control of the FIC allowing the founder to determine how the FIC gets the best return for any investments it makes, as well as who is entitled to receive any distribution from the FIC;
  • Reduced tax liabilities;
  • Shareholders of the FIC will only pay tax to the extent that the FIC makes any distribution to them, however if profits are retained in the FIC, then no further tax is payable.

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Our Approach & Our Experience

Myerson’s expert team can advise you on your estate planning, and identify whether or not an FIC would be a suitable vehicle for you. If so, we can ensure that you understand how the FIC will work in practice, that the FIC is set up in the most suitable way and prepare all necessary documentation in this regard.

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Our Promise & Core Values

Our Promise

The Myerson Promise - Our Partners, team of lawyers and support staff commit to giving our clients more.

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To always give you clear, jargon-free advice.
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To be completely transparent about our fees from the outset.
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Progress every matter in an efficient and timely matter.

Our Core Values

Our core values are at the centre of everything we do.

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We are always professional but ensure that we are friendly and approachable.
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We are determined and enthusiastic about supporting our clients and our people.
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We willingly take responsibility and can be relied on to be commercial, effective and efficient.

Meet Our Specialists

Home-grown or recruited from national, regional or City firms. Our specialists are experts in their fields and respected by their peers.

Scott Sands

Scott Sands

Scott is a Partner in our Corporate and Commercial department

Clara Staunton

Clara Staunton

Clara is a Senior Solicitor in our Wills, Trusts and Probate department

Amanda Freeman

Amanda Freeman

Amanda is a Partner and is Head of our Private Client department

Testimonials

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Book your consultation using the below enquiry form, alternatively, you can call us on

0161-941-4000