Trusts Exposed: Why FICs Are Taking Over

Video Description

HMRC has pushed more trusts into the spotlight than ever before. With the Trust Registration Service now requiring updates within 90 days, annual declarations for taxable trusts, and fines building for non-compliance, the admin burden has exploded — hitting thousands of UK landlord families. But here’s the shift most investors miss: Companies House confirms 5.43 million companies on the UK register, and ONS data shows SMEs represent 99.8% of the UK business population. Corporate structures like Family Investment Companies (FICs) are no longer niche — they are mainstream, board-governed wealth vehicles designed for control and succession. This video explains why a well-structured FIC can outperform a traditional trust for governance, control, and multi-generational planning — and where trusts are still essential. PROBLEM Landlords face soaring compliance: TRS updates, penalties, trust transparency, and less privacy. Internally, families feel uncertainty — “Am I choosing the wrong structure?” Philosophically, people want a structure that protects wealth across generations without HMRC breathing down their neck. THE GUIDE I help UK landlords and families build compliant, tax-efficient structures across companies, trusts, FICs, and international planning. Clear, accurate, legislatively grounded advice — without the jargon. THE 3-STEP PLAN Assess goals: control, IHT strategy, legacy requirements Choose a structure: FIC vs trust modelling, CT bands, dividend flows Implement + govern: minutes, shares, loans, compliance calendar WHAT’S AT STAKE Ignore the shift and you risk higher admin, penalties, TRS exposure, and inefficient IHT planning. Get it right and you gain control, governance, predictable distributions, and long-term family alignment. WHAT YOU’LL LEARN • When FICs outperform trusts for control and succession • How alphabet shares, dividend policy, and governance create stability • CT rate bands (19% small profits, 25% main rate + marginal relief) • Pitfalls: loans to participators, benefit issues, poor record-keeping • Practical setup and compliance steps landlords must follow • Book a consultation with us: https://optimiseaccountants.co.uk • Register for our free estate planning webinar: https://zurl.co/NdFde LEGISLATION REFERENCES (UK ONLY) Finance Act 2024 (Corporation Tax – rates and thresholds) HMRC Trust Registration Service (TRS) – Registration & 90-day update rules HMRC TRSM guidance (TRSM10000–TRSM70000) Companies House Register Size FYE 2025 HMRC CTM – Corporation Tax Manual (CTM02010 onwards) Inheritance Tax Act 1984 (relevant for trust and estate planning) #FamilyInvestmentCompany, #UKTaxPlanning, #LandlordTax, #EstatePlanningUK, #TrustsVsCompanies, #OptimiseAccountants