Arrange a meeting to see if we can help you today!

The term ‘family investment company’ (FIC) is used to describe a wide range of special purpose company structures that offers greater control, protection, flexibility and tax efficiency for wealthy families to pass assets onto the next generation.

Before establishing a FIC, it’s important to define:

• Why the FIC is being created?
• What types of assets it will hold (cash, investments, property, trading interests)
• How the family intends to use the structure over the long term.

Clear objectives help shape the share classes, governance, tax planning, and investment strategy.

FICs typically use multiple share classes to balance control and economic benefit. Key decisions include:

• Who holds voting versus non‑voting shares
• How to allocate growth shares to the next generation
• Whether parents gift or loan capital to the FIC
• The rights attached to each share class (dividends, capital, voting)

This helps protect control while allowing wealth to grow for younger family members.

A well-designed governance structure ensures smooth operation and avoids future disputes. Consider:

Who will act as directors

• How investment decisions will be made
• Whether a family charter or shareholders’ agreement is needed
• Exit and succession provisions

A clear governance framework maintains family harmony and ensures the company runs effectively.

The most common funding methods are:

• Shareholder loans
• Cash subscriptions for shares
• Transfer of existing investments

Loans can offer flexibility—especially when parents want repayment options without gifting capital outright.

Tax plays a central role in FIC planning. Key issues include:

• Corporation tax on investment income and gains
• Inheritance Tax implications of funding the FIC
• Capital Gains Tax if transferring assets
• Dividend tax on income extracted by shareholder
• Withholding tax if the FIC has overseas investments

Professional tax modelling is essential to ensure the structure remains efficient.

Consider whether a FIC will:

• Protect assets from divorce, creditor claims, or financial mismanagement
• Be used alongside family trusts
• Require bespoke shareholder protections

A thoughtfully structured FIC can significantly enhance asset protection.

Families should plan in advance for:

• Share transfers on death
• Buy‑out mechanisms
• Tax  liabilities on succession
• Long‑term sustainability of the structure

Clear succession rules protect family wealth across generations.