Close investment holding companies
In this short but important section, you'll learn what makes a close investment holding company distinct and why it affects your tax planning. A close investment holding company is a close company that holds investments rather than trading — and this distinction has significant tax consequences.
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In this lesson
- 0:00 Close investment holding companies overview
- 0:10 Definition and key characteristics
- 0:26 Loan interest relief restrictions
- 0:53 IHT and CGT treatment of CIC shares
About this lesson
You'll discover why qualifying loan interest relief isn't available to shareholders who borrow to invest in these companies, unlike the relief available for trading companies. You'll also understand that shares in a close investment company don't qualify as business assets for inheritance tax and capital gains tax purposes, which impacts both your personal tax position and your exam answers on Advanced Taxation.
Duration: 1m
Transcript
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