FICs won’t be suitable for everyone. Some things to be aware of include: Some transfers may incur capital gains tax or stamp duty land tax Assets may be subject to both corporation tax (as company profit) and income tax (as dividends) You (as the company founder) could be taxed for any dividends paid to your children if they are still minors Information about the company and its owner must be publicly available. Our solicitors work closely with you to determine whether a company structure is right for your situation and fits in with your plans for succession and the rest of your estate.

Family Investment Companies

Our specialist tax and corporate lawyers can advise you on setting up and administering an FIC, as well as providing expert tax and wealth structuring advice.

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Choosing the right services for you

Family Investment Companies (FICs) are private limited companies set up to hold family assets. They are becoming an increasingly popular part of wealth structuring and can provide an efficient alternative to traditional planning options.

Some of the benefits of FICs include:

Tax-efficient – as companies they are taxed differently to individuals and trusts
More control – over how assets are distributed among family members and what happens in cases such as divorce
Flexible about types of assets they can hold – for example, most types of real estate and also liquid investments, including assets held outside the UK

FICs are often attractive to business owners and entrepreneurs who are already familiar with company structures. They can be useful for any family with wealth to invest, however, and are increasingly being used as a way to protect, give away, and grow assets in a structured way.

Our solicitors can advise on whether an FIC is right for you and your family’s wealth. We’ll work with you to create a structure that is tailored to your needs and protects your assets against future risks or changes in the family.

Our multi-disciplinary team is highly specialised and experienced. We’re experts not just in tax and wealth planning, but also in corporate law, which is vital for making FICs work effectively. Our real estate team can deal with any property transactions.

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We have the largest private client team in the UK, our team of experts are here to provide discreet legal advice to support you and your family.

Andrea Jones

Partner & National Head of Private Client Advisory

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Meet Our Experts

Andrea Jones

Partner & National Head of Private Client Advisory

Find out more

Frequently Asked Questions

We talk to people everyday about their wills, trusts, and estates. These legal matters are so important but they’re not always easy to understand, especially when you’re just starting out and trying to understand what help is available and how it can get you where you need to be. Here are some of the questions we hear most often.

How Do FICs Work?

An FIC is usually set up by a ‘founder’ who creates at least two classes of shares:

The founder’s shares carry voting rights but no rights to capital or income
Non-voting shares are then given to family members, who have a right to capital and income but no control over the company.

The founder is usually also the director of the FIC. The non-voting shareholders can’t make decisions about investment strategy or the issue of dividends, but they can benefit financially. The value of company assets can be removed from the founder’s estate for inheritance tax purposes.

Non-voting shareholders can be given voting shares later on if this is appropriate (e.g. once minor children become adults), and may be appointed as a director of the company by the founder.

It’s important to draft bespoke articles of association and shareholders’ agreements to regulate which family members can make decisions, and what happens when the shareholders die or when other events occur.

What are the tax benefits of a Family Investment Company?

The government has said it wants to reduce corporation tax – this means the company structure can be beneficial to many wealth holders.

Some of the tax benefits of an FIC include:

Most dividends paid to the FIC are exempt from corporation tax, regardless of whether the dividend has a UK or overseas source
In many cases there’s no tax charge for setting up an FIC
Transfer of company shares to shareholders (family members) count as a gift and are therefore potentially exempt from inheritance tax
Shareholders won’t be taxed on the first £2,000 of dividends that they receive in a tax year.

Our tax experts are able to advise whether an FIC is the most tax-efficient option for your estate and circumstances.

Are there any risks?

FICs won’t be suitable for everyone. Some things to be aware of include:

Some transfers may incur capital gains tax or stamp duty land tax
Assets may be subject to both corporation tax (as company profit) and income tax (as dividends)
You (as the company founder) could be taxed for any dividends paid to your children if they are still minors
Information about the company and its owner must be publicly available.

Our solicitors work closely with you to determine whether a company structure is right for your situation and fits in with your plans for succession and the rest of your estate.

Do I need to make a new Will?

Not necessarily, since your shares as a founder will form part of your estate and pass on to your beneficiaries according to the terms of your existing Will.

However, we do recommend reviewing your Will regularly, especially if setting up a new wealth-holding structure like an FIC. This will ensure your estate is still set up in the most tax efficient way and give you peace of mind that after your assets will be passed on in the way you want after your death.

Call us to discuss your estate planning needs – or use our online form and we’ll call you back.

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We are here to help you understand your rights and the support you need. Complete our enquiry form and one of our experts will contact you by the next working day.

Alternatively, you can call us now.

Our opening hours are Monday to Friday 8am to 6pm (Excluding Public Holidays).

Call us free on 0370 1500 100

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