Family investment companies
Produced in partnership with Deborah Clark of Mills and Reeve LLP
Family investment companies

The following Private Client practice note produced in partnership with Deborah Clark of Mills and Reeve LLP provides comprehensive and up to date legal information covering:

  • Family investment companies
  • What is a family investment company?
  • Family investment companies used for estate planning
  • Income tax benefits of a family investment company
  • Limited or unlimited family investment company
  • Funding a family investment company
  • Funding a family investment company using a loan
  • Control and governance of a family investment company
  • Articles of association
  • Shareholders' agreement
  • More...

Interest in the use of family investment companies (FICs) as an estate planning vehicle increased following the changes to the tax treatment of trusts that took place in 2006. Since then, the structure has become increasingly popular, especially as corporation tax rates have been reducing. As a result they are now widely used, but the term FIC is applied to many different types of structures, used for a wide variety of purposes.

This Practice Note does not consider the broader tax planning opportunities that may be associated with using a FIC.

What is a family investment company?

A FIC is simply a company that has been established with the specific purpose of meeting the needs of, usually, a single family.

As the name suggests, a FIC is generally established to hold investments for the family but many of the principles can equally apply to a family trading company.

Investments can be in any form that a company is entitled to hold and would typically include property and/or equities.

It will normally have adopted bespoke articles of association that include restrictions on who can own shares and who can control the company.

It has no special status under the Companies Act 2006 (CA 2006) nor does it attract any special tax treatment.

Most FICs are incorporated in the UK and are tax resident here but some families may choose to incorporate offshore. This

Related documents:

Popular documents