Family Investment Companies—advantages and disadvantages for high net worth families

Table of contents

• Summary of the FIC
• The main advantages and disadvantages
• Tax treatment and investments
• Control and managing distribution of wealth
• Asset protection and privacy
• Conclusion

Article summary

Private Client analysis: For high net worth (HNW) UK resident clients who have until now relied on their non-domicile (non-dom) status for their tax and estate planning, the tax changes coming into effect from 6 April 2025 represent a significant and perhaps daunting change. The move from domicile-based to residence-based regimes for exposure to UK tax on non-UK assets, across income tax, capital gains tax, and inheritance tax (IHT), will mean that many non-dom or deemed dom UK residents will be brought fully into the scope of UK tax along with the offshore trust structures they have set up. The family investment company (FIC) can represent an alternative or additional tax and estate planning option for the right type of client. This article sets out some of the main advantages and disadvantages of FICs for HNWs. Written by James Gribbin, Michelmores LLP