Setting up a Family Investment Company


Trusts are the standard way to pass down family wealth to future generations. But recent tax changes mean that family investment companies may offer a more tax-efficient option…

Many families are considering the use of a Family Investment Company as a tax efficient investment vehicle in addition to their current saving vehicles such as their pensions and ISA portfolios.

Family Investment Company Applications

You can utilise a Family Investment Company in a number of ways including;

  1. As a property holding vehicle for existing property assets
  2. As a property holding vehicle if you are looking to begin investing in property
  3. For investment assets including stock and shares
  4. To house the proceeds of a corporate exit, i.e. a business sale

Benefits of setting up a Family Investment Company

  • Tax Benefits – 20% on profits generated
    • Lower tax rates on income arsing from investments if you are a higher rate tax payer – 20% vs 45%
  • Greater succession opportunities
  • The transfer of cash into the company would be tax free as apposed to the Nil Rate Band restrictions around Trust settlements.
  • Greater control and flexibility
  • Additional vehicle for savings

Download our guide  for more information about the uses of Family Investment Companies, which considers real life client situations.

Take a look at our Family Investment Company case study to understand more about there real life applications.

If you would like to speak to one of our team on how you or your clients could utilise Family Investments Companies as part of their personal and estate planning, then enquire here.