Client Story

Inheritance tax saving secured as Private Wealth team advise on a family investment company

14th April 2023

When a couple sold their business resulting in a significant increase in the taxable value of their estates, they turned to Katherine Hague, Partner in our Private Wealth team, for specialist support. Without careful estate planning advice, their estates were likely to incur significant inheritance tax liabilities.

Following a review of the clients’ personal and financial situation, in particular the clients’ wish to retain control over the management of the sale proceeds and their previous experience of managing companies, Katherine and the team determined that a family investment company would be the most appropriate solution to tax efficiently manage the succession of their assets.

With the involvement of our Corporate colleagues and the client’s other professional advisors, our Private Wealth experts advised on the structure, creation and funding of the family investment company. This required bespoke drafting of articles of association, in particular the various share rights, a shareholders’ agreement and loan documentation. This enabled the implementation of a structure that met the couple’s objectives of securing careful succession and effective tax management.

Reflecting on the case, Katherine said: “This was a particularly interesting yet complex matter which required a detailed understanding of the family’s long-term objectives, technical knowledge and collaborating with other advisors. Thanks to our team’s extensive experience, we provided a bespoke solution to the family’s needs whilst navigating a complex legal and tax landscape. We understand our clients need clear and specialist support to help safeguard their assets for future generations.”

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