Why UK landlords should use a Family Investment Company not a Ltd company to avoid inheritance tax

Why UK landlords should use a Family Investment Company instead of a normal limited company to avoid inheritance tax.
This video explains why all UK landlords who expect the value of their rental properties to grow to over £1 million in value should set up a Family Investment Company instead of a normal limited company or a limited liability partnership. If you already have a limited company then you should consider converting into a family investment company.
The video explains why most UK accountants who advise their UK based landlord clients to convert their property portfolios from being held personally to a limited company structure are being short-sighted and not meeting the long term needs of their clients.
If you want to understand some of the basics of a Family investment company you should watch the related video entitled - Why You Should Use a Family Investment Company to avoid Inheritance Tax on large Estates - • Why You Should Use a F...
If you have any questions on UK Inheritance Tax, please use the comments section below or visit our website at www.bluebond.co.uk to book a free consultation.
If you learned something from this inheritance tax video please just take a second to press the “like” button. This would be greatly appreciated. Thanks in advance - Charles.
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[@MichaelWilliams-lo3ix]

Brilliant

[@bertiewooster3326]

We'll get it in the end we always do........HMRC tax inspector retired just spend it or give it away best advice and costs nothing.

[@Inheritancetaxadvice]

Lets agree to disagree

[@davidcooks2379]

If I already own a property and decode to transfer it into a FIC, will SDLT and CGT be payable at transfer? Thank you

[@Inheritancetaxadvice]

Not if the planning is done in the correct manner which the video explains that a partnership needs to be set up first.

[@h.a1671]

In regards to the partnership do you provide the service to set this up?

[@Inheritancetaxadvice]

Yes we provide a full end to end service of advice follwed by implemenation once you fuly understand the pros and cons of the planning

[@ug1166]

You mention holding property for 3 years in the partnership to claim incorporation relief. Is this ' 3 years' stated within HMRC legislation

[@Inheritancetaxadvice]

No as far as I know however it is a generally accepted figure by most tax consultants. A case can be made for a shorter period but most of the time its not worth risking an issue with HMRC.

[@dilipchohan3926]

I have 2 limited companies with properties in them Can these limited properties be changed FIC and what are the implications

[@Inheritancetaxadvice]

Yes they can. No negative implications except there are fees to set it up. Please book a free 30 minute meeting on our website to discuss,

[@goodbyetothepeople92]

Hi. Is this approach suitable for a private landlord in the following situation. Married couple both higher rate income tax payer. 2 children under 18 BTL1 - £200k value £50k mortgage BTL2 - £220k value £55k mortgage Residential home - £950k value £200k mortgage Thanks

[@Inheritancetaxadvice]

Yes its suitable for evryone who intend to be a professional landlord ( owns over 6 rental properties) - book a meeting on our website to have a chat

[@goodbyetothepeople92]

@@Inheritancetaxadvice I only own 2 btls at the moment

[@Inheritancetaxadvice]

Not at this time but if your kids are under 18 then you are probably quite young - so there are other strategies - Book a meeting as previously suggested

[@Jeffybonbon]

can FIC have mortgages

[@Inheritancetaxadvice]

Yes - An FIC is the same as any other limited company once it is set up and so it can arrange mortgages

[@Jeffybonbon]

@@Inheritancetaxadvice what happens if i already have mortages on investment property in my sole name can i keep the currant lender or do i need to find a new lenders

[@Inheritancetaxadvice]

@@Jeffybonbon You need to check with your cuurent lender what the difference in rates would be to move to a company but if you hold them personally at present you have to have an LLP for 3 years before you can claim incorportation relief and so you have time

[@Jeffybonbon]

@@Inheritancetaxadvice hanks I have spoken to TMW and they will not allow this They have sent me the Loan agreement so it would be a huge job trying to arrange the number of Mortgages I have they have said if i breached the agreement they would ask all funds to be repaid in 28 days and if i factor in the higher rates to move it makes no sense