Family Investment Companies

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

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.

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

Blog6th Feb 2026
Future Proofing your Wealth with Family Investment Companies and Trusts 
Experts from our Private Client and Business Advisory teams recently took part in an interview with BusinessTV. Paula Fraser, Hugo Hill and Tom Andrew shared insights on how Family Investment Companies (FICs) and Trusts are often used in tandem to form an optimal strategy for business owners…
By Tom Andrew
View more
Blog3rd Feb 2026
Employment Rights Act 2025: 5 ways employers can prepare now
A significant change to UK employment law is approaching. Both employers and employees will need to understand how the Employment Rights Act 2025 will impact them. The Act received Royal Assent in December 2025, with key changes being phased in…
By Natalie O’Hare
View more
Blog23rd Jan 2026
2026 Changes to Agricultural & Business Property Relief: 5 Steps to Protect your Assets
Big changes to Business Relief (BR) and Agricultural Relief (AR) are coming in April 2026 following the announcements at the Autumn Budget back in 2024. The current 100% relief was to be capped at £1 million per person, with any…
By Paul Halliday
View more
Blog20th Jan 2026
M&A in Health & Social Care: the UK Care Home Sector: Everything Owner-Operators Need to Know
The UK care home market is evolving. Rising costs, tighter regulation, and demographic pressures are reshaping how providers operate — and creating real momentum in mergers and acquisitions (M&A). For many owner-operators, this shift represents both a challenge and an…
By Alistair Stewart
View more