HM Revenue & Customs (HMRC) has implemented a secret unit to investigate the use of family-owned investment companies (FICs) by very wealthy individuals who avoid paying inheritance tax.

We consider family offices with total assets of more than 1 trillion US dollars.

For the first time, the Financial Times announced tax avoidance through complex legal loopholes. Last April, the tax authority created a special group based on concerns about this fact. It will target FICs that are used to hold stocks and other assets. That is, the dividend tax is paid as a corporate tax, and not as an income tax on individuals, which means a lower figure.

HMRC told FT: “The Family Investment Company team was established . . . in April 2019 to look at FICs and do a quantitative and qualitative review into any tax risks associated with them with a focus on inheritance tax implications. The team’s work is exploratory at this stage and as such, we would not like to share any more details.”

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The UK has set up a special secret unit to counter inheritance tax evasion