The following are the important features of a FIC:
•A FIC can be created with the relevant family members subscribing for shares at par with cash and assets (or loan) then being made to the company by the founder(s). Alternatively, shares can be transferred to the younger generation(s) after the company has been formed and cash is held by it. Either way there would be a PET for IHT purposes but no CGT would arise.
•The share structure of the FIC can involve it being divided into several classes of shares. The shares held by the founders would normally be those with the voting rights, giving them full control over the FIC.