Family Investment Companies (FICs)
A Structured Approach to Holding and Managing Family Wealth
Family Investment Companies (FICs) are a corporate structure that may be considered as part of long-term wealth and succession planning.
At SA Ledgers,we support clients in understanding whether this type of structure may be appropriate, and how it may fit within a broader planning approach.
What is a Family Investment Company?
A Family Investment Company is typically a UK private limited company used to hold investments such as cash, property, or other income-generating assets for the benefit of family members.
In many cases:
- Control is retained by one generation (often through voting shares and directorships).
- Economic value is passed to other family members (through non-voting or growth shares).
This separation of control and ownership allows families to take a structured approach to managing wealth over time.
How FICs May Be Used
In appropriate circumstances, a Family Investment Company may be considered as part of:
- Long-term wealth management.
- Intergenerational planning.
- Ownership structuring following a business exit.
- Holding investments within a corporate framework.
FICs can offer flexibility in how assets are held and managed, although the specific benefits will depend on individual circumstances.
Our Planning Approach
We do not position a Family Investment Company as a standalone solution.
Instead,where relevant, we consider it as part of a broader planning approach, which includes:
Understanding Your Current Position
Reviewing how your assets and investments are currently held and identifying potential planning considerations.
Clarifying Your Objectives
Considering factors such as control, income requirements, family involvement and time horizon.
Evaluating Whether a FIC Is Appropriate
Assessing whether a corporate structure aligns with your objectives and circumstances.
Structuring the Arrangement
Designing share classes and ownership structures to reflect control and economic interests.
Working Alongside Advisers
We work alongside legal advisers where required to ensure appropriate governance and documentation.
Important Considerations
A Family Investment Company will not be suitable in all cases. It is important to recognise that:
- The tax treatment of income and gains can be complex and situation-specific.
- Profits may be subject to corporation tax and further tax on extraction.
- Certain assets (including investment assets) may not benefit from Business Property Relief.
- There are ongoing administrative and compliance requirements.
- HMRC continues to monitor FIC structures under standard compliance procedures.
- There may be costs associated with implementation and ongoing management.
Careful planning and coordination with advisers is essential to ensure the structure aligns with your objectives.
Taking the Next Step
Noting that a Family Investment Company may not be appropriate for every client,we would typically begin with an initial discussion to ensure we understand your objectives. This would be the first part of our planning process to:
- Understand your current position.
-
Explore whether a FIC may be suitable in your circumstances.
- Consider how it may fit within a broader planning approach.
Important Information
The information on this page is provided for general guidance only and does not constitute tax, legal or financial advice.
Each case will depend on individual circumstances. There is cost and complexity involved in implementing any structure, and tax outcomes will depend on current legislation and HMRC practice, which may change.
Independent professional advice should always be obtained before implementing any arrangement.
We do not provide regulated investment advice.