88 | Tees Business
KEEPING IT IN THE FAMILY
How FICs can be a less
taxing alternative to trusts
F
amily Investment Companies (FICs)
are becoming an increasingly popular
alternative to discretionary trusts for
individuals looking to pass wealth to
the next generation as part of their wealth
management and associated tax planning.
The taxation, administration and costs
associated with trusts have changed
over recent years and gradually made
them a less attractive option in certain
circumstances.
An FIC allows for features that a trust
does not. The key to an FIC’s success is
based upon how the company is structured.
An FIC is not an “off the shelf” product that
looks the same in each scenario and the
structure will depend on the family’s wealth,
assets, relationships and requirement for
income.
FICs are potentially attractive for tax
purposes due to currently lower rates of
corporation tax in comparison with the
income tax on trusts. However, the risks of
“double tax” can mean taking consistent
income from an FIC is best avoided. This
is sometimes
overcome by funding
the FIC via a loan,
which is repaid
gradually over time.
The common
approach is for
founding family
members to set up
the FIC, take the
board positions and
retain majority voting
rights (sometimes
through a “golden share”). This allows
senior family members to retain control,
which is often an important requirement.
Different classes of shares are usually
issued to the next generations, providing
flexibility on dividends. Articles of
association and shareholders’ agreements
need to be carefully drafted to ensure the
safe future of the FIC.
Considerations of the suitability of an
FIC often revolve around inheritance tax
planning and possible divorce of children.
An FIC is a long-term arrangement to put
in place and it is of paramount importance
to consider all possibilities and set up
something that will work and ensure the
family’s plans are realised efficiently for
years to come.
Considering all of the options with
TBI’s expert Corporate and Private Client
departments ensures the correct solution
is utilised. Discuss whether an FIC may
be suitable for you or your client today.
Call 01740 646000 or visit tbilaw.co.uk.
The Dynamic Duo
WORDS: JULIE BURNISTON
Howard Eggleston and Tom Sturman are co-founders of the phenomenally
successful Tomahawk Steakhouse group. With six venues opened in just
two years and more to come in 2020, Tees Business spoke to executive
chef Tom and tried to get to the ‘sauce’ of their success…
The swiftness of Tomahawk’s growth is
incredible, how did it all begin?
The story starts at the Dog & Gun pub in
Potto. Howard has run numerous businesses
for the past 30 years and I’ve worked in many
locations as a chef. We both fancied opening
a steakhouse and, to cut a long story short,
we converted the pub into the first Tomahawk
Steakhouse. What makes Tomahawk stand out from
other eateries?
Our steaks are so delicious because we
choose Himalayan salt dry-aged steaks which
gives the meat an amazing, velvety texture.
We also have a secret glaze that I developed
in-house. Someone else could cook the same
steak in the same way but without that glaze...
it’s no Tomahawk! constantly looking at what sells well and try to
develop the menu to reflect that.
How many outlets do you have now?
We have six – in Ponteland, Newcastle,
Yarm, Potto, Husthwaite in North Yorkshire
and Darlington. We also have RIO, our new
Brazilian steakhouse in Jesmond, and we
have two takeaways opening soon in Yarm and
Jesmond. Why do you think Tomahawk is thriving in
such uncertain times?
All restaurants are run with an element of
risk and ours is no different. We can’t get
over-confident. Our customers are loyal and
we respect them making return visits. We are What are your future plans?
Tomahawk are crazy busy at the moment, but
we can’t get ahead of ourselves. We have a
new site near Lendal Cellars in York city centre
that we are opening very soon and a new
wave ready for 2020.
Great for local employment!
Absolutely. We source our staff as locally as
possible. After all, they are the ones who
know the customers best.
For details on menus and how to book at all venues,
visit tomahawk-steakhouse.co.uk
RIO is now open in Jesmond at 61 Osbourne Road,
NE2 2AN rio-steakhouse.co.uk
Telephone 0191 244 9333