A Family Investment Company (FIC) is a privately owned limited company set up to hold, grow, and pass on family wealth. It provides a tax-efficient way for families to invest assets while retaining control.
✅ Tax Efficiency – Profits are taxed at corporation tax rates (currently lower than income tax rates).
✅ Retain Control – Parents or founders can manage investments while younger family members benefit over time.
✅ Alternative to Trusts – More flexible than a traditional trust while still offering inheritance tax benefits.
✅ Asset Protection – Keeps family wealth secure for future generations.
| Feature | Family Investment Company (FIC) | Trusts |
|---|---|---|
| Tax Efficiency | Corporation tax (lower than personal tax) | Higher personal tax rates may apply |
| Control | Directors manage investments | Trustees manage assets |
| Inheritance Planning | Can transfer shares to family gradually | Can be complex and subject to IHT rules |
| Flexibility | More investment freedom | Restricted by trust rules |
An FIC is ideal for families with significant assets looking to reduce tax liabilities, protect wealth, and retain control. It’s commonly used for property investment, stock market portfolios, and long-term family wealth management.
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A Family Investment Company is a powerful estate planning tool that allows families to grow and protect their wealth in a tax-efficient manner. If you're considering an FIC, contact Fraser Bond today for expert guidance on wealth structuring and property investment.
