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Family Investment Company (FIC)

Tax Planning • Family Investment Company (FIC)

A family investment company (FIC) is a type of private company that wealthy families use to manage and invest their assets. In the UK, FICs are becoming increasingly popular for tax-efficiently passing on wealth to future generations.

What Differentiates FICs From Other Investments?
Our in-house tax team explored how several key features differentiate FICs from other types of investment vehicles:
- Firstly, they are owned and controlled by the family rather than external investors or shareholders. This allows the family to decide how their assets are invested and managed, ensuring that the wealth remains within the family.
- Secondly, FICs can hold a wide range of assets, including shares in other companies, property, and other investments. This flexibility makes them an attractive option for families looking to diversify their wealth and protect it from potential risks.

Learning Resources

How Can We Help You?

If you would like to speak to one of our advisers, please get in touch today.

“The company was recommended to me, i first called the company and received a call back later the same day, from start to completing the pension transfer i had numerous video link calls with them and they really made the whole process easy and very understandable, nothing was an issue and the whole team where very knowledgeable and experienced, nothing was a problem for them, truly recommend there services, great work from all there team.”

P Wood

22, April

“Since December 2024 I have been working with Hoxton’s, primarily with Ellie Gracie on 3 investment vehicles. I opted out of the first as I considered it too risky, the second one has been set up in March and we are currently trying to close on another in the next few days. Ellie has been great. She is always ready to listen to my concerns and is prompt with her email responses. I would say that we work well as a team and I certainly listen to her advice. Long may it continue!!”

R Permanand

21, April

“good product knowledge, easy to contact.”

M Shaw

21, April

“Our advisor, Avi Shah is patient, knowledgeable and personable. He took time to get to know us and didn’t rush us into an agreement . He is proactive and available to chat when needed and has provided us excellent advice in our assets.”

C Field

25, March

The Main Benefits of an FIC

One of the main benefits of using an FIC is the potential to reduce the tax paid on wealth passed down to future generations. In the UK, inheritance tax is levied on the value of an estate above a certain threshold (currently £325,000). Using an FIC, it is possible to structure the ownership and distribution of assets to minimise the amount of tax payable.

There are several other considerations to bear in mind when setting up and operating an FIC. For example, ensuring that the company is appropriately structured and governed and that any investments made are consistent with the family’s long-term goals and risk appetite is essential.

Summary

In summary, a family investment company can be a valuable tool for managing and investing family wealth in the UK, providing flexibility, control, and the potential for tax efficiency. However, it is crucial to seek professional advice and ensure that the company is set up and operated in a way that meets the family’s needs and complies with relevant laws and regulations.

Guide

Family Investment Company Guide

Family Investment Company Guide

A modern way to grow wealth, reduce tax, and secure your legacy.

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