Scroll down for more information

Family Investment Companies

In recent years the Family Investment Company has become popular, either alongside or as an alternative to family trusts.

Contact Jill Walker

  • Jill Walker
    Meet the team

    The team

  • High net worth individuals. International private clients. Trustees. Beneficiaries.

    Who we can help

  • Personal tax. Tax compliance. Tax planning. Charitable giving. Scottish taxpayers. International private client tax. Tax residence and domicile. Partnerships.

    How we can help


A Family Investment Company (FIC) still offers much of the control and flexibility provided by a Trust, but with greater tax efficiency from which the founder (the person putting the funds into the company) can also benefit. We can discuss the pros and cons of each approach and advise you on whichever route you choose. 


A Family Investment Company is, as the name suggests, a private limited company. The company will frequently be initiated by a loan from the founder (who would be the Settlor if this was a Trust.) The shareholders are usually family members – the equivalent of the trustees in a Trust. 

The shares can be split into separate classes to provide different levels of control, income (from the dividends) and capital repayment. This gives similar flexibility to a Trust, but where a FIC has a further advantage is that, unlike the settlor in a Trust, the company founder can still benefit from the assets 

As a company it must have articles of association and submit accounts and confirmation statements to Companies House annually. FICs pay corporation tax, which is at a lower rather than the higher rate income tax and capital gains tax generally paid by Trusts.  

Although a FIC is more tax-efficient, it requires more input from solicitors and accountants, so you’ll need to be mindful of the set-up and operating costs. 


FICs are, for many, now the preferred choice for tax planning and assets protection. Many of our clients are drawn to FICs as a means of passing on family wealth whilst retaining an element of control and taking advantage of favourable Corporation Tax rates. 

Our team of tax specialists regularly advise on: 

  • The structuring and financing of FICs. 
  • Tax efficient distributions from the FIC and managing the timing of profit extraction to take advantage of lower Income Tax bands and allowances. 
  • The Inheritance Tax benefits of using a FIC structure and the potential interaction with Trust tax planning. 
  • All associated tax compliance from initial set up to annual reporting obligations. 

We will work alongside you and your family to ensure your FIC protects the interests of all shareholders and meets your longer-term succession planning objectives. 

  • AAB's private client tax team deliver clear advice in understandable terms so we can appreciate how effective planning can lead to benefits for the whole family. They have taken away the worry and doubt for us.

    Alex Wiseman

  • "I have been very much looked after by the Private Client team for a number of years now. Managed by experienced individuals, they are able to provide that sometimes elusive, bespoke, one to one professional advice.

    Joanna Robertson

  • I wouldn’t hesitate in recommending AAB to anyone else who, like us, may be struggling to get the expert advice required, especially when it involves coming back to the UK and managing tax aspects on overseas income and assets.

    John Bannerman

  • The efforts of the team ensured that timely planning could be undertaken to the overall benefit of my family. AAB clearly demonstrated their expertise here and proved why it is always worth getting the best professionals on the job!

    Keith Fletcher

#Updates See all updates

Sign up for the latest industry insights

  1. Blog26th Apr 2024

    Gunhild Dam, author of blog about non-dom tax

    Non-Dom Tax Changes – Navigating The ‘Tax Twilight’ Zone

    Rarely has the concept of non-UK domicile status and its impact on how an individual is subject to tax in the UK been in the headlines so much as in recent years. This is in part due to the wife…

    By Gunhild Dam

    View more
  2. Blog6th Apr 2024

    Jill Walker, Private Client Partner and author of blog about Salaried Member Rules

    Are The Goalposts On Salaried Member Rules Moving?

    What are salaried member rules? The salaried member rules for Limited Liability Partnerships (“LLPs”) were introduced in 2014 to ensure only those members who held a genuine ‘partner’ role were taxed as self-employed individuals, such that those with arrangements closer…

    By Jill Walker

    View more
  3. Blog3rd Apr 2024

    Carol Edwards, author of blog about furnished holiday let changes

    Navigate the End of the ‘Furnished Holiday Let’

    The number of Furnished Holiday Lets (FHLs) in the UK has increased in recent years, driven by the ever-growing popularity of UK ‘staycations’.  However, Jeremy Hunt announced in the 2024 Spring Budget that the Furnished Holiday Letting regime will be…

    By Carol Edwards

    View more
  4. Blog7th Mar 2024

    Lynn Gracie, author of blog about non-dom tax breaks abolished

    Non-Dom Tax Status Abolished But A New 4 Year Residence Scheme May Soften The Blow

    For someone who has been working in tax for several years, non-domicile tax status and the UK tax breaks this provides has always been a controversial tax policy, no matter what government has been in power and no matter how…

    By Lynn Gracie

    View more

See all updates

Our accreditations