Secure Wealth, Minimise Tax Exposure, and Build Long-Term Financial Security
At Pearl Lemon Accountants, we understand that managing a family office in the UK is not just about numbers—it’s about protecting your family’s legacy in a way that aligns with UK laws and financial regulations. With years of experience working with high-net-worth families across the UK, we provide precise and actionable tax planning strategies to ensure your wealth is preserved for generations.
Our Family Office Tax Planning Services
We take pride in offering detailed tax planning services customised to UK-specific needs. Each service is designed to mitigate risks, optimise tax efficiency, and safeguard your family’s financial goals.
1. Inheritance Tax (IHT) Planning
The 40% IHT rate in the UK is a significant concern for family offices. We create robust strategies to reduce this burden.
Inheritance tax can feel like an inevitable expense, but it doesn’t have to be. By implementing tools such as Business Relief (BR), trusts, and lifetime gifting under the seven-year rule, we help reduce the taxable value of your estate.For example, using AIM-listed shares can qualify your assets for up to 100% BR, ensuring wealth passes smoothly to your heirs.
2. Capital Gains Tax (CGT) Management
Disposing of assets without a CGT plan can lead to hefty bills.
In the UK, individuals face CGT of up to 28% on residential properties and 20% on other assets. Our strategies include utilizing the £6,000 annual CGT exemption, deferring liabilities through rollover relief, and leveraging Entrepreneurs’ Relief for family businesses. For instance, a family selling shares in their private company can benefit from significant tax savings when reinvesting into qualifying assets.
3. Cross-Border Tax Solutions
International families often face double taxation or residency challenges.
For families with global assets, managing the UK’s Statutory Residence Test and understanding double taxation treaties are crucial. We specialize in helping non-domiciled individuals benefit from the remittance basis, ensuring foreign income and gains are only taxed when brought into the UK. This approach is particularly effective for families with substantial overseas investments.
4. Family Investment Companies (FICs)
FICs are a powerful solution for managing wealth and reducing tax exposure.
Setting up a Family Investment Company (FIC) allows you to hold and grow assets while benefiting from lower corporation tax rates of 25% on retained profits. By structuring share ownership wisely, we enable tax-efficient income distribution among family members. A recent example involves a London family office that reduced its tax liabilities by over 40% by transitioning to an FIC structure.
5. Tax-Efficient Investments
Strategic investments can provide dual benefits of growth and tax relief.
We help you identify opportunities like Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS). These options not only offer up to 30% tax relief on investments but also defer CGT on reinvested gains. For example, a family investing £500,000 in an EIS-qualifying startup could save £150,000 in income tax while deferring significant CGT liabilities.
Why Choose Pearl Lemon Accountants?
We know that family offices in the UK require solutions that align with both their financial goals and the country’s stringent tax laws. Here’s why families choose us:
1. Deep Expertise in UK Tax Laws
We stay ahead of legislative changes affecting inheritance tax, CGT, and international tax treaties. Our understanding of UK-specific frameworks ensures your family office remains compliant and efficient.
2. Personalised, First-Person Service
We see every family office as unique. That’s why we offer direct, hands-on support to ensure your strategy aligns with your specific needs and values.
3. Proven Results for UK Families
From setting up tax-efficient structures to ensuring seamless intergenerational wealth transfers, we’ve helped families across the UK retain billions in assets while staying within the legal framework.
How Our Process Works
Our process is designed to simplify the complexities of UK tax planning while ensuring your family office operates efficiently and securely. At every step, we prioritise your financial goals and provide clear, actionable advice customised to your unique circumstances.
Initial Consultation
We begin with a detailed assessment of your family’s financial objectives, tax exposure, and existing structures.
Our team analyses your current holdings, evaluates areas of potential risk, and identifies opportunities for tax efficiency. This step ensures we fully understand your family’s needs before developing a strategy.
Customised Strategy Development
Using the insights gained, we create a plan that incorporates the right legal frameworks and investment strategies.
This may include setting up trusts, family investment companies (FICs), or offshore structures where appropriate. We also ensure adherence with UK tax laws while focusing on maximising long-term benefits.
Implementation and Monitoring
Once the strategy is agreed upon, we implement the necessary changes and maintain regular oversight.
Our team handles the operational side of setting up trusts, filing reports, and liaising with HMRC. We also monitor your tax strategy, making adjustments to reflect changes in tax laws or family circumstances.
This structured approach ensures that your family office operates smoothly, remains compliant, and achieves its financial goals.
Why Effective Tax Planning Matters for UK Families
Without the right tax strategy, family offices in the UK face significant risks. For example:
- A £10M estate without IHT planning could incur a £4M tax bill, drastically reducing the wealth passed to the next generation.
- A family office failing to structure international investments properly may pay tax twice on the same income.
Our services ensure that your family avoids these pitfalls while creating a sustainable legacy.
Client Expectations and Tangible Outcomes
When working with us, you can expect:
- Clear Communication: Transparent updates and actionable advice at every step.
- Technical Excellence: In-depth understanding of UK tax codes, investment vehicles, and regulatory requirements.
FAQs
Strategies like trusts, Potentially Exempt Transfers, and Business Relief allow families to reduce their taxable estate. For example, gifting assets over seven years before death ensures they fall outside the estate for IHT purposes.
Non-domiciled individuals can choose to be taxed only on income and gains brought into the UK, making this approach ideal for families with substantial overseas assets.
Rollover relief defers CGT when proceeds from the sale of an asset are reinvested into qualifying assets, preserving liquidity for future growth.
Yes, each individual has a £6,000 CGT exemption (2024). Proper planning ensures this allowance is fully utilized across family members.
Let Us Help You Build a Secure Financial Future
At Pearl Lemon Accountants, we pride ourselves on helping UK families manage their financial futures with accuracy. Our expertise in family office tax planning ensures that your wealth remains protected and your legacy endures.
Work with our tax experts today to secure your family’s wealth for generations.
