With rising property values, shifting tax rules, and increasing demand for flexible estate planning, Family Investment Companies (FICs) have emerged as a powerful alternative to traditional trusts. Designed to help families retain control over their wealth while strategically managing inheritance and tax exposure, FICs offer a dynamic structure for long-term investment—particularly in property.

In his webinar, Using Family Investment Companies for Property Investment, Simon Briton explains that whether you’re an advisor guiding high-net-worth clients or a family business owner planning for the next generation, understanding how FICs operate—and how they compare to trusts—is essential for making informed, future-focused decisions.

What Are Family Investment Companies (FICs)?

A Family Investment Company (FIC) is a private limited company set up to hold and manage family wealth, particularly investments such as property, shares, or cash. Its primary function is to enable parents or other wealth creators to retain control over assets while allowing income and growth to be distributed among family members, usually children, in a tax-efficient manner.

How FICs Differ From Trusts

While both FICs and trusts serve estate planning and wealth distribution purposes, they differ significantly:

Tax Advantages of Using a FIC

Using a FIC can unlock several key tax benefits, especially when implemented carefully:

• Lower Tax on Income: 25% Corporation Tax vs. 45% income tax, with mortgage interest deductible.
• Dividend Planning: Retain or defer dividends and distribute among lower-tax-rate family members.
• Inheritance Tax (IHT) Mitigation: Use of growth and frozen shares to pass on value while retaining control.
• Capital Gains Tax (CGT) Flexibility: Gains taxed at corporate rate, potential to gift shares without triggering CGT.
• Stamp Duty Land Tax (SDLT): Property held in FIC may allow future ownership transfers via shares (0.5% stamp duty).

Risks and Misconceptions

• Benefits are not automatic – require careful planning and implementation.
• Potential HMRC scrutiny if reliefs are misused.
• Initial setup can be complex and costly.
• Misalignment between founders’ control and successors’ expectations can cause tension.
• Less suitable for assets requiring personal use or for short-term liquidity needs.

For the full webinar, please click here. In this course Simon Briton covers the following topics:

• How FICs are structured and why they’re popular for property investment
• The key tax considerations – corporation tax, income extraction, IHT and SDLT
• Legal and governance aspects: articles, shareholders’ agreements, and control
• Practical tips for managing investment risk and banking/lending issues
• Case studies highlighting pitfalls, HMRC concerns and success factors

The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article. The information at the time of publishing was accurate and could be subject to final changes.