Family Investment Companies – General


Andy Wood

Andy is a practical, creative tax adviser who assists a variety of clients in achieving their personal and commercial objectives in the most tax efficient manner.

  • Over the last few years, the Family Investment Company is becoming a relatively popular alternative to the more traditional trust when it comes to wealth and succession planning.
  • However, in my book, there is an awful lot of unnecessary mystery and complexity surrounding the Family Investment Company or FIC.
  • Indeed, the ‘product-isaton’ of this concept is the probably the reason why it has been revealed that HMRC is more interested in these structures – particularly where there is a level of complexity around share classes and rights.
  • The reality is that a FIC is simply a company used by a family in order to carry out their wealth and / or succession objectives.
  • Of course, depending on what the family is trying to achieve, the structure and articles of the Company can be as simple, or as complex, as desired.
  • The use of the FIC has grown steadily over recent years. This has largely been at the expense of the trust where the introduction of an IHT ‘entry charge’ for most family trusts by our old friend Gordon Brown.
  • The FIC provides a different mechanism to provide some control or influence over the family’s wealth protection.
  • If you would like further assistance in exploring the suitability of a Family Investment Company then please do not hesitate to get in touch

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