Robert Sidebottom

Overview

Robert is a racehorse and jockey trainer, living abroad, with a few years remaining until retirement. He has two sons and three granddaughters, some existing investment property, and a background in purchasing and refurbishing UK property. The pandemic changed Robert’s working circumstances, prompting him to reassess his route to retirement. He needed to plan for his future whilst building a protected legacy for his family.

Due to the rising cost of living in the UK and a desire to enjoy semi-retirement in a more appealing location, Robert now lives in Thailand. He continues to work with jockeys and horses, but enjoys a more peaceful lifestyle which he wishes to preserve by ensuring his investments deliver the returns he requires.

This FIC case study illustrates how the Family Investment Company structure suited Robert’s needs, and how he worked with TLPI to implement it.

The Situation and Goals

Robert began his journey with the objective of achieving stronger returns on his savings and improving the performance of his investments. He also wanted to ensure his wealth would be preserved as a legacy for his family, without exposing them to a significant Inheritance Tax burden. As he entered his sixties, his key concerns were:

• Whether his retirement savings would be sufficient to deliver the retirement lifestyle he desired
• Concern that his existing savings and investments were underperforming
• The need to protect family wealth for his sons and granddaughters

Robert initially undertook his own research into ways of improving pension performance and investment outcomes. Having previous experience in UK property investment, he was aware of the potential returns property could deliver, but felt insufficiently confident in the legal and tax implications to proceed without professional support. Online searches and video content highlighted various strategies and structures, but lacked the depth and guidance he was seeking.

Robert explained that, had he been younger, refurbishing and flipping UK property might have been an option. “However, as you reach your sixties, you are less inclined to take risks.” As such, a more hands-off solution with attractive, controlled returns became the priority.

After speaking with several providers, one firm proposed an in-depth Zoom consultation costing over £200. Whilst this highlighted a range of investment options, most did not provide the inheritance planning advantages Robert required. This is when he learned more about the Family Investment Company. Although the structure appeared well suited to his objectives, the quoted setup costs of approximately £20,000 through barristers and legal professionals felt excessive for his circumstances.

“I had heard of the Family Investment Company but could find no information or support for setting one up outside of the barristers I had spoken to. At £20k for setup, it felt expensive, but I was close to proceeding. Before committing, I decided to explore whether any alternatives existed, and that is when I found TLPI. Not only could they provide the FIC setup, but my consultant helped me understand all of my investment options.”

Robert’s initial consultation with TLPI focused on using pension funds to meet his objectives. However, it quickly became clear that the Family Investment Company was the most appropriate structure for his situation.

The setup of Robert’s Family Investment Company was straightforward and efficient. TLPI’s service allowed him to establish the structure and deploy capital at his own pace, providing reassurance through proper due diligence rather than rushed decision-making. To date, Robert has chosen hands-off investments via third-party property development loans.

“Living abroad and unable to dedicate significant time to managing investments, this solution is ideal. It provides higher returns than my savings would have achieved, whilst matching my risk tolerance, level of knowledge, and time availability.”

The Approach

Every client engaging with TLPI begins with a free consultation to establish their personal circumstances, objectives, and the challenges consuming their time, energy, and resources.

Robert recognised that a tax-efficient investment company was required, but struggled to find clear guidance online. Whilst confident that property investment was the right asset class, the structure, strategy, and implementation required clarity. The Family Investment Company provided the control, flexibility, and protection he needed.

Working with our clients, we aim to:

• Gain a detailed understanding of their personal and financial circumstances
• Apply specialist expertise across over one thousand tax benefits and subsidies available to company directors
• Provide clarity to enable informed decisions across all wealth assets and options
• Implement 360° strategies to mitigate tax liabilities effectively
• Deliver the control and flexibility required to leverage existing wealth to grow assets
• Free up time by consolidating personal and financial planning into a single, cohesive strategy

Why? 

Robert’s Family Investment Company allows Robert to invest in property with his savings, having ascertained that his current level of pension was not the most suitable source of funds for his property investment goals. The company vehicle is more tax efficient than if Robert had made the purchases personally and also offers security for his family which was a key factor in Robert’s strategy. 

How? 

Whilst buying investment property personally is liable for income tax as part of the estate, the Family Investment Company allows Robert to retain total control, whilst holding property within a tax-efficient wrapper for the protection of his family. 

Setting up a Family Investment Company means your children become beneficiaries and company assets are not liable for Inheritance Tax. 

The flexibility of the Family Investment Company means that Robert has full control over the company and its assets. He is able to move funds in and out of the scheme. More importantly, TLPI have helped him correctly structure the product so that shares are protected for his sons and granddaughters, should the worst happen. 

The Result 

Robert has started by making investments via loan notes. This is hands-off property investment, giving him more peace of mind and requires less legal knowledge or time commitment. Robert knows that his money is making far more than it would be sat in stocks and shares accounts. He plans to invest more of his funds once he decides upon other loan notes or property-related asset classes. TLPI’s setup means that Robert has the continuing reassurance of his consultant at the end of the phone, should he require advice regarding his strategy. By securing his future, Robert has been able to follow his desire to escape the rising costs of living in the UK. He has an idyllic lifestyle in Thailand but is still able to grow his investment portfolio to the advantage of his whole family, for the future. 

Summary 

For most of our clients, knowledge is key. You don’t know what you don’t know, and so for many, they simply do not know the advantages that can be gained by implementing The Family Investment Company, for Robert, he was able to ring fence assets via the FIC, and protect his legacy. 

We asked Robert what his advice to others, looking to optimise their own saving, pensions and ring fence assets would be.   

“If I was advising anyone, I would say just watch and read as much as you can. The internet, property channel and YouTube are a great source of information, especially if you are looking to invest in the buy-to-let market. These people will tell you what mistakes they made and guide you through those. Educate yourself about what is involved. Whilst there is a lot of rubbish, if you’re discerning you can sort the weak from the reputable.” 

“I was nearly biting the bullet and paying £20k odd but TLPI have set up my Family Investment Company for a fraction of the cost. Sometimes looking on the gov.uk website is too difficult to get specific answers, but TLPI could answer all of my questions straight away.” 

At TLPI our consultants are experienced in property, investment strategy and pensions. We are registered with HMRC to set up Family Investment Companies and SSAS pensions. We would like to thank Robert for sharing his story. Our aim with FIC case studies is to provide learning content that illustrates how the Family Investment Company works  as well as other powerful tax planning vehicles and strategies that can be used in conjunction with the Family Investment Company along with allowing you to ring fence assets. Our aim is always to understand your personal situation and provide advice and support that fits around your aims and goals. 

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