HMRC ditches Family Investment Companies taskforce

The taxman's team was initially set up in April 2019 to investigate the tax risks of FICs, specifically in relation to inheritance tax (IHT). FICs have traditionally been used as part of succession planning for high net worth clients but have become increasingly popular because of their tax advantages. Their structure means they can be used to transfer value to younger generations without the older generation releasing control of the assets and without creating an immediate IHT charge. An HMRC spokesperson said: "The objective of the team was to establish an improved understanding ...