HMRC sets up secret unit to target wealthy families on IHT

HMRC has implemented a secret unit to investigate the use of family investment companies (FIC) by the wealthy to avoid paying inheritance tax. The secretive unit was set up last April as concerns grew over how the rich exploit loopholes to reduce bills. It puts family offices with a combined total of more than $1trn in assets within its sights. In an FIC, members of a family own shares, with parents or grandparents typically exercising control by holding shares with voting rights. Giving shares to children can help to reduce inheritance tax liability. The existence of the unit, whi...