In this scenario, Alex walks through how a Family Investment Company (FIC) was able to significantly reduce a business owner’s income by £40,000, allowing him to pay his children tax-free, while creating more opportunities for long-term tax efficiency. By lowering his taxable income, the business owner was able to not only save on taxes but also structure his income in a way that was more beneficial for his family. Alex explains how this opened the door to further tax planning opportunities, enabling the business owner to become more tax-efficient with his work and to plan ahead for Inheritance Tax (IHT). This case highlights the powerful flexibility an FIC offers to business owners who want to retain control while securing a tax-efficient legacy for future generations.