- There are multiple ways of making tax-efficient distributions
- Take care when setting the company up
Family investment company shareholders will have breathed a sigh of relief last summer when HM Revenue & Customs (HMRC) closed the unit it had set up two years previously to investigate the vehicles’ use among wealthy families for tax purposes.
As we noted in ‘When should you set up a family investment company?’, IC October 2020, family investment companies are most often used by people with relatively large sums of money as a form of succession planning. They have become increasingly popular since regulations introduced in 2006 made trusts less attractive.