I'm considering putting my properties into a Family Investment Company (FIC) or a trust for IHT planning. What are the key tax-efficient differences and complexities for each option, especially regarding ongoing property management and income distribution?
Quick Answer
Family Investment Companies (FICs) and trusts offer different tax characteristics for property investors. FICs benefit from Corporation Tax rates and flexible share structures. Trusts are subject to varied income tax rates and potential periodic IHT charges, with less flexibility in income distribution.
About This Topic
Compare Family Investment Companies (FICs) and trusts for property IHT planning in the UK. Understand CGT, SDLT, Corporation Tax, and IHT implications from April 2024.
This question is part of our Tax & Accounting category, providing expert guidance on UK property investment.
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