Family investment companies
Produced in partnership with Deborah Clark of Mills and Reeve LLP
Practice notesFamily investment companies
Produced in partnership with Deborah Clark of Mills and Reeve LLP
Practice notes
Family investment companies (FICs) have been established as an estate planning vehicle for many years and their popularity shows no sign of reducing, despite rising corporation tax rates. The term FIC is applied to many different types of structures, used for a wide variety of purposes. Although this Practice Note does not consider the broader tax planning opportunities that may be associated with using a FIC.
What is a family investment company?
A FIC is simply a company that has been established with the specific purpose of meeting the needs of, usually, a single family.
As the name suggests, a FIC is generally established to hold investments for the family but many of the principles can equally apply to a family trading company.
Investments can be in any form that a company is entitled to hold and would typically include property and/or equities.
It will normally have adopted bespoke articles of association that include restrictions on who can own shares and who can control the company.
It has no special status under the Companies
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Investment definition
What does Investment mean?
An investment will typically mean any type of property or interest held within the territory of the host state. This will often extend far beyond 'obvious' property, such as real estate or shares in a local company, to (depending upon the circumstances) other interests such as rights under a contract, intellectual property rights and private loans. As with the concept of 'investor,' in the modern commercial world what does and does not qualify as investment can be a complex question. The definition of 'investment' will vary between BITs.
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