Family Investment Company (“FIC”) – Signpost

Author

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.

Family Investment Company (“FIC”) – Signpost

What is a FIC?

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.

There is a lot of unnecessary mystery and complexity woven in to the concept of the Family Investment Company.

However, the truth 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 is necessary.

The use of the FIC has grown steadily over recent recent years.

This has largely been at the expense of the trust where the introduction of an IHT ‘entry charge’ for most family trusts where the value transferred to the trust exceeds the nil rate band and no relief is available.

The FIC provides a different mechanism to provide some control or influence over the family’s wealth protection.

Further reading

We have produced a number of other articles on FICs:

We have significant expertise in exploring client’s objectives around estate planning and succession. As such, we are well placed to advise on whether a FIC might fit in with these objectives.

If you have any queries around FICs then please do get in touch.

Last updated 12 December 2019

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.