Chris Thorpe looks at which vehicle an investor should use.
When considering making an investment, two of the main issues are a good return and an exit strategy. As well as the performance of the investment itself, how to hold it is another matter. Personal income tax rates and those on subsequent capital gains tax (CGT) on disposal, and potentially inheritance tax (IHT), may make holding something personally an unattractive option.
So, what about trusts and companies?
What do they have in common?
By placing an asset into either vehicle, you are technically giving the asset away. A limited company is a separate legal entity from the individual investor; whilst that investor may own all the shares (and thus indirectly the asset), the income and returns belong to the company in the first instance.
By placing an asset into trust, you are
