Family Investment Companies

In recent years Family Investment Companies have become popular, either alongside or as an alternative to family trusts.

Jill

Jill Walker

Private Client Partner

Contact Jill Meet the team

Who we can help

  • HIGH NET WORTH INDIVIDUALS
  • INTERNATIONAL PRIVATE CLIENTS
  • TRUSTEES
  • BENEFICIARIES

How we can help

  • PERSONAL TAX
  • TAX COMPLIANCE
  • TAX PLANNING
  • CHARITABLE GIVING
  • SCOTTISH TAXPAYERS
  • INTERNATIONAL PRIVATE CLIENT TAX
  • TAX RESIDENCE AND DOMICILE
  • PARTNERSHIPS

HELPING YOU DO WHAT'S BEST FOR YOUR FAMILY

Meet our team

Family investment companies (FIC’s) still offer 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. 

WHAT ARE FAMILY INVESTMENT COMPANIES?

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. Family investment companies 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. 

Contact us about family investment companies

  • 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

MAKING FAMILY INVESTMENT COMPANIES WORK FOR YOU

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 Family investment companies
  • 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.

Needing help with family investment companies? Speak to us

Sign up for the latest industry insights

  1. Blog29th Apr 2026

    Callum Gray, author of article about

    Industrial M&A: Attractive businesses for investment?

    The UK’s industrial landscape continues to evolve at pace, making it attractive for trade players expanding their geographical reach, service offerings competing with PE, and growth funding platforms seeking expansion via strategic bolt-ons. Each of these raises the question: Why…

    By Callum Gray

    View more

  2. Blog28th Apr 2026

    Joel Topham, Business Advisory Partner and author of blog about the Professional practices benchmarking 2025 report

    Professional practices benchmarking 2025 report

    In the fast-moving economy that is the legal sector, accurate and relevant data for your decision-making is key. But many firms are still relying on outdated benchmarks, gut instinct, or fragmented insights. That makes it harder to stay competitive, control…

    By Joel Topham

    View more

  3. Blog27th Apr 2026

    Lauren McCluskey, head of Office of the CFO and author of article about finance function

    Is Your Finance Function Ready for What’s Next? 

    The desk of the CFO is a strange and wonderful place, akin to Mary Poppins’ bag, but in a growing business, it’s also where the question “are we ready for what’s next?” gets answered every day. From compliance and audit through to funding…

    By Lauren McCluskey

    View more

  4. Blog16th Apr 2026

    Sean McAuley, author of blog about failure to prevent fraud law

    Failure To Prevent Fraud Rules: Everything You Need To Know

    From 1 September 2025, the Economic Crime and Corporate Transparency Act 2023 introduced the new corporate offence of Failure to Prevent Fraud. This represents a major shift in how UK organisations are held criminally accountable for fraud committed for their…

    By Sean McAuley

    View more

UNITED KINGDOM + IRELAND + INTERNATIONAL