This information is restricted to readers in England and Wales due to the difference in legislation in Scotland and Northern Ireland.

Why Choose a Family Investment Company?

An FIC is a private limited company, usually set up by parents (or founders), who retain control as directors, while gifting shares to children or other beneficiaries. This setup allows:

• Gift Value, Keep Control

You can gift non-voting shares in the FIC — reducing your estate for Inheritance Tax (IHT) — while keeping voting shares and decision-making power.

• Freeze Estate Value

Future growth in the value of the FIC sits outside your estate, reducing IHT liability and ensuring wealth accumulates within the family structure.

• Tax Efficiency

FICs benefit from lower corporation tax rates (currently 19%–25%), enabling capital to grow more quickly than if taxed at higher personal income or capital gains rates.

• Protect Assets

By centralising wealth within a corporate structure, you shield it from:

• Divorce settlements
• Bankruptcy or financial missteps by family members
• Unintended loss of control or dilution

• Tailor Distributions

You can define how and when beneficiaries access funds — whether through dividends, loans, or retained profits. This ensures financial discipline while preserving flexibility.

When Is an FIC the Right Choice?

FICs are particularly useful for:

• Families with surplus capital or sale proceeds from a business exit
• Those wanting to retain influence over family wealth
• Business owners looking to diversify holdings while maintaining tax efficiency
• Parents keen to gift wealth gradually without handing over large sums directly

It’s also ideal for those concerned about protecting wealth from external threats or ensuring long-term succession planning.

Key Considerations for Setting Up an FIC

While FICs offer major advantages, professional advice is essential to:
✅ Design the right share structure
✅ Set clear governance rules through articles of association
✅ Ensure compliance with HMRC and mitigate tax risks
✅ Coordinate with your wider estate plan, trusts, and insurance strategies

A poorly structured FIC can backfire, leading to tax liabilities, family disputes, or unwanted exposure.

Future-Proof Your Wealth Strategy

With the right planning, a Family Investment Company can be a cornerstone of generational wealth — giving your family security, structure, and strategic growth opportunities long into the future.