Investment Management
We provide both advisory and discretionary investment management services. We will work with you to establish the levels of risk and return which you consider appropriate and develop a financial plan with you to facilitate the achievement of your objectives. We will discuss any particular investment preferences which you may have and incorporate these into the planning process.
Our discretionary investment service will then work to implement the plan, report back regularly to you on the performance and provide guidance on the achievement of your desired objectives. The investment manager will create and maintain portfolios that are specifically designed for you and customised towards helping you achieve your objectives on a pre-agreed risk profile.
We are able to manage investments in different jurisdictions and currencies. We work with other professionals such as lawyers and tax advisers to achieve the most appropriate structures and investments.
Succession
Preparation of the next generation for wise stewardship of inherited resources is a key component to effective succession planning. Assets passed on without appropriate education, clear thought or tax planning can represent a huge burden which can be overwhelming for the recipients. In addition, some recipients may lose motivation and cease to pursue their life’s interests and aspirations.
We will endeavour to assist you and your other professional advisers to ensure that your wills are up to date, that any succession planning is robust and that the next generation is helped to take on the responsibilities envisaged.
Alternative Approaches
We are creative and flexible and can provide you with innovative solutions to challenges that you face as you consider your interests now and in the future.
Family Investment Companies
A family investment company (FIC) is a UK-resident private limited company whose shareholders are family members. This vehicle can be extremely tax-efficient where an individual transfers significant sums of cash into a company. This cash could be invested to generate income for the family.
Family Investment Companies versus Trusts
Trusts are the standard way to pass down family wealth to future generations. However, recent tax changes mean that family investment companies may offer a more tax efficient option. The Finance Act 2006 introduced significant changes in the UK’s tax regime for trusts. Most new trusts now enter into the relevant property regime which results in:
- An immediate charge to inheritance tax (IHT) at 20% for transfers made in excess of a donor’s available nil rate band (currently £325,000)
- 10-yearly IHT anniversary charges (capped at a rate of 6%)
- A further charge to IHT if assets ‘exit’ the trust (also capped as above)
With these drawbacks, individuals wishing to pass down substantial wealth need to consider alternative vehicles, which may be more tax-efficient. However, rates of corporation tax available in the UK (19% from 1 April 2017, rise to 25% from 1 April 2023).
To find out more about Family Investment Companies including advantages and disadvantages please click here.
As you would expect from Cantab Asset Management, we will provide the professional skills and the business analysis and research that will assist you achieve your objectives.
