Family Investment Company
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- เผยแพร่เมื่อ 9 ก.พ. 2025
- In this video I show you how to set up a Family Investment company. There a several advantages to these types of property companies. The video shows you how to reduce and or completely mitigate income tax on your property investments, as well as eradicating inheritance taxes on your Estate saving you hundreds of thousands of pounds, if not millions. I also show you client case studies of how my team and I have helped our clients to grow their property portfolios using this exact set up.
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This TH-cam channel is all about how to build a 7 & 8 figure Property Portfolio. On this channel I share the exact secrets that I have used to grow my own property portfolio to a property value of multiple 7 figures that produces an income of over £150,000 a year.
My name is Richard Norris and I am the founder of Property Investors Accelerator. The Property Investors Accelerator program is dedicated to help you build a 7 & 8 figure property portfolio that produces in excess of £100,000 a year, so that you can have the freedom of time to do the things that you ultimately want to do.
I am very passionate about Property, Business, Finance and Sales. In my free time I like to travel, watch football and spend time with my partner Daniella and our 3 children.
On this channel, you can expect the following:
Exclusive property investment training (for free)
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Thank you so much for being here - it’s time to be resilient and be great.
Richard Norris & The 7-figure Property Portfolio Team
Makes perfect sense Richard 👍
Very helpful and in principle makes a lot of sense. There are some calculation errors in the case study, though, so just check that out. Does not really matter that the numbers are wrong, the principle stands.
Simply to follow and to understand
Thank you Rich very helpful
Hi Richard. Very, very interesting video 👌
Thanks @rio grand. Glad you found it useful.
Not sure how this avoids the ten year (6%) charge if the trust had capital growth rights. Yes shares worth 10p on day 1, but not by year 10. Unless I'm missing something
Thank you for the insightful training, Richard. Would family structure work / make sense, if you are setting up a company with a business partner and as a result the company will involve 2 families with kids OR would this be too complicated ? Thanks for replying.
Hi Richard, love the video really informative
Love the video Richard! Thank you very much, you mentioned on the video that you gave a team of professional that can help with the accountant and ads? How we can get in touch please?
Hi Richard, thank you for all your content. My Mother owns her own house, a flat that is nearing lease renewal and another property outright. This sounds like the right structure for her, however could i who own my own house with a small mortgage, put this into the ltd smart structure and build a property portfolio? Would this also negatively impact my sister or anyone involved? Lots of questions!! All the best,
Richard
Great video Richard, one further question, I think I understand the growth share regarding IHT. What happens to growth If property(ies) had increased in value & then sold prior to deaths of A & B shareholders, I presume you would still pay Corp. Tax on profit & Trust would remain with just nominal value???
Hi Richard, my parents and I are looking at setting up a family investment company since we are planning to start acquiring properties and building our portfolio. On that note, are there any specific accountants or solicitors you would recommend who could assist us in actually setting up the company correctly as you explained in the video?
Interesting video, thank you. Are you aware that if investment property was already held in a standard Ltd co structure, could this then be transferred to a family investment structure? Further, have you come across any lenders that do have an issue with the structure?
Yes, if you have a standard ltd co structure, it can easily be converted into a smart company. The smart company is really to do with the share structure, so you wouldn’t need to do any transfer, you would simply change the structure of the shares, and freeze the value of the shares at the share value at the time of restructuring the company. The tax consultants, Lawyers and Accountants that we use do this alot with our clients.
Yes, the only lenders that I know of are Fleet and Capital Home Loans. However, you should always check the terms and conditions of any mortgage that you are taking out to ensure you meet their criteria, and inform your mortgage broker of your structure so that they can place you with the right mortgage lenders that don’t prohibit the use of such structure in their terms and conditions of business.
Hi, If you drawdown a directors loan account from future profits, has this amount already paid Corporation Tax
Hi @Alan Day, your directors loan account, isn’t included in your profit and loss statements. It sits on the balance sheet as loan to the company, therefore you don’t need to make profit to draw down on your directors loan. Any profits in the business will naturally have to pay corporation tax, but you can show losses on the balance sheet, so no corp tax due and draw down against your directors loan month on month if you wanted to.
The point is, your directors loan withdrawals aren’t taxed in anyway at all, only company profits are taxed, but you wouldn’t draw down a directors loan against future profits of the business, if you were to draw down money from future profits it would be dividends.
I have kids going to college and high school. Is family investment company suitable for any individual who has kids.?
A family investment company has several benefits, the main advantage is to protect intergenerational wealth in the family, and mitigate IHT. If your estate is over the £650k IHT allowance or close to, and you could exceed this in the future, then a smart company could be very beneficial, it really does depend on one’s personal circumstances.
If you are paying private school fees then I would suggest considering a smart company as you can pay for their fees outside of the directors loan, with little to no taxes depending again on the shareholders tax allowances.
Anyone with kids can set one up, the suitability and benefits depend on the individuals goals, aspirations and what they are trying to achieve by setting one up.
I have a question about the Discretionary Trust taxation point in 23rd minute. Though the Trust is valued at £0.10 at inception, the Trust has Growth Class shares and not Freezer shares. As all the capital growth is within the trust and hence the value of the trust will include the capital growth of the portfolio, isn't it? In this case, wouldn't we be liable for 6% tax every year from 10th anniversary of the total value of the Trust? Appreciate your thoughts
yes, in this scenario, the IHT charge at the 10-year anniversary would be based on the value growth of the business rather than the nominal value of the Growth Shares (£0.10). If the amount is below the nil-rate band (£325,000), it’s unlikely there would be an immediate tax liability, but regular monitoring and strategic planning are essential to managing future potential charges effectively. If it is above the nill rate band then there will be IHT to pay at 10 years of up to 6%.
To say the shares in the Discretionary Trust are only worth 10 pence is a nonsense. If that's true Richard, I'll buy the Growth Class Q shares in *your* company off your discretionary trust for a whole £1, realising a 1,000% return on that investment! Clearly you'd be a fool to refuse me... IF it's true that those shares are only worth 10 pence. 😄