Family Investment Company

Facilitating tax-efficient wealth transfer and asset management across generations.

The primary aim of a family investment company (FIC) is to facilitate tax-efficient wealth transfer and provide a robust framework for managing family assets such as property, investment portfolios and money. FICs have become a popular alternative to Trusts due to their tax benefits.

Our experts at Price Bailey can assist you on all matters associated with Inheritance Tax (IHT) and estate planning to ensure that you have the most affective wealth management strategy in place.

Why may a FIC be the right choice for you and your family?

Tax-efficient wealth transfer:

FICs can offer significant tax benefits, including potential reductions in IHT and lower corporation tax rates compared to direct ownership or trusts. However, there are associated risks as with any tax planning and a FIC should be considered as part of a long-term strategy.

Asset protection and control:

Founders can retain involvement and a level control over family assets while gradually transferring wealth to children or grandchildren.

Customised investment management:

FICs allow flexible structuring for income, capital, and voting rights, letting families create unique investment and governance frameworks that reflect their objectives.

Price Bailey can advise on all tax aspects of FICs

Our Price Bailey experts offer personalised advice to help you manage your assets tax-efficiently:

  •  Setting up the FIC

Once established, assets such as cash, investments, or property can be transferred to the FIC. Founders may exchange assets for shares or loans, setting up an arrangement that aligns with family goals. Assets may also be sold to the company, with the value held as a loan back to the original owner.

  • Understanding your tax implications

FICs can be used to help reduce certain taxes, however there are associated risks and potential tax costs in achieving this tax planning. And therefore a FIC should be considered within all the circumstances of a families unique situation.

  • Structuring your FIC

FICs can issue different share classes to achieve specific goals, our team of experts can advise on the best option for you.

  • Governance & family control

Governance is managed through the FICs Articles of Association or a shareholder agreement. These documents outline the rights of each shareholder and can include family-specific rules, such as limiting share ownership to family members or family trusts.

  • Exploring flexible investment options

FICs can hold a diverse range of investments (UK and foreign shares, property and more). Each investment type may have distinct tax implications. Our experts can guide you through the most tax-efficient strategies for your individual situation.

FAQ’s

Can a FIC help fund specific family lifetime events i.e. wedding or university fees?

The unique possibility with FICs is that different share classes can be used to achieve these goals.

What may I want to consider before speaking to our experts?

Consider what you want the company to achieve, whether that be holding property, managing investments or a combination of both. Identifying your objectives in advance will help structure the company effectively and ensure it aligns with your long-term financial and estate planning goals.

Why choose Price Bailey?

Our team of tax experts provides personalised guidance on structuring, managing, and maximising the benefits of your FIC, from the initial setup to ongoing tax planning. We’ll help you customise the FIC structure to align with your family’s unique goals and advise on optimal tax efficiency.

Contact us today…

If you’re looking to explore the benefits of a FIC for your family’s wealth management contact us to discuss the most effective way to set up a FIC tailored to your needs.

We can help

Contact us today to find out more about how we can help you

Meet the team

Top