A Family Investment Company (FIC) is a private limited company that is structured and run to hold, manage and grow family wealth in a controlled, tax-efficient way. It has become increasingly popular in the UK as an alternative to using trusts, especially since tax rules around trusts have tightened in recent years.

Here’s how it works and why families use them:

The basic idea

An FIC is usually created by parents or grandparents (the “founders”) who transfer cash, investments, or other assets into a company instead of holding them personally. The company then invests those funds, for example, in shares, bonds, property or other long-term assets, with the goal of growing the family’s wealth over time.

The key feature is that the founders retain control over the company, while passing the economic benefit of future growth to their children or other family members.

This is done through a careful division of share classes:

� Voting shares are typically retained by the founders, allowing them to make decisions and control distributions.

� Non-voting shares are usually given to children or held in trust for them, allowing them to benefit from dividends and capital growth without having day-to-day control.

Why families set them up

1. Control Parents often want to pass wealth to the next generation but are reluctant to give away full control. A Family Investment Company allows them to retain decision-making power while transferring future growth outside their estates.

2. Tax efficiency Companies are generally taxed at lower rates than individuals on investment income and capital gains.

� The Corporation Tax rate (currently 25 per cent for most companies) is often less than higher-rate personal income tax.

� Dividends received by a company from most UK and overseas shares are usually exempt from Corporation Tax.

� The company can also deduct certain expenses, such as management or professional fees, before tax.

When profits are eventually distributed as dividends, they are taxed in the hands of shareholders, but with careful planning, these can be allocated to family members in lower tax bands.

3. Inheritance Tax (IHT) planning By giving away non-voting shares early, parents can transfer future growth outside their estates. If those shares are gifted and the founders survive seven years, the value of those shares normally falls outside their taxable estate for IHT purposes.

Because the company structure fixes control and ownership separately, it avoids many of the risks of outright gifting.

4. Flexibility and investment control The FIC can hold a wide range of assets – from property portfolios to listed shares or even private equity. Directors (often family members) can decide how income and gains are reinvested, distributed or lent back to shareholders.

Typical structure

A common setup might look like this:

� The parents form a new limited company and subscribe for voting shares.

� They then introduce capital (either cash or investments) as a loan to the company.

� The company invests the funds.

� Over time, the loan can be repaid to the parents tax-free, while profits accumulate for the benefit of younger shareholders.

Sometimes, the company’s Articles of Association or a shareholders’ agreement will set out clear rules on dividends, share transfers and governance to avoid future family disputes.

Points to consider

� Costs and complexity: An FIC must prepare annual accounts, file returns at Companies House, and meet Corporation Tax and record-keeping requirements.

� Professional advice: Legal, tax and financial planning advice are essential at the outset, especially to draft share classes, shareholder agreements, and loan terms correctly.

� Double taxation: Profits are taxed in the company, and then again when paid out as dividends. Planning is needed to minimise this.

� Disclosure: Details of directors and shareholders appear on the public record, so privacy is reduced compared with a trust.

Summary

A Family Investment Company offers a structured, long-term way to manage and pass on wealth within a family while maintaining control. It combines corporate flexibility with estate planning advantages and can often be more efficient than trusts for families with significant liquid wealth or investment portfolios.

However, it is not suitable for everyone. The success of an FIC depends on careful setup, disciplined management, and ongoing professional oversight to ensure compliance and that it remains aligned with the family’s goals.

If you would like to explore whether a Family Investment Company might suit your circumstances, please call so that we can discuss your options before taking any action.

With the Autumn Budget due on 26 November 2025, speculation is mounting about which taxes could rise and where the Chancellor might look for extra revenue. After ruling out increases in the main rates of income tax, National Insurance and VAT, attention is shifting to the so-called “stealth” areas of the tax system, the ones that can quietly increase tax receipts without grabbing headlines.

Below, we outline the main themes currently circulating and what they could mean for clients.

Property and housing taxes

The property sector is attracting particular attention this year. There is talk of a complete overhaul of Stamp Duty Land Tax (SDLT), possibly replacing it with a more regular, value-based property tax aimed at higher-value homes. Some analysts believe this could be combined with a tightening of reliefs such as the residence nil-rate band, which reduces Inheritance Tax on family homes.

There is also speculation that second homes and buy-to-let properties may face higher charges, either through SDLT reforms or changes to Capital Gains Tax. Meanwhile, parts of the housing market appear to be slowing as buyers and sellers wait to see what the Budget may bring.

Anyone planning a sale or purchase before the end of the year should be aware that rules could change suddenly, particularly if property-related measures are announced to take effect from Budget day.

Wealth and high-earner targeting

Higher earners are another focus of speculation. Reports suggest the government could review how partners in professional practices, such as LLPs, are taxed compared with employed staff. A tightening of the partnership rules, or the removal of certain structuring advantages, could raise additional revenue while being presented as a fairness measure.

Capital Gains, Inheritance Tax and “stealth” changes

Capital Gains Tax (CGT) remains firmly in the spotlight. Aligning CGT rates with income tax would significantly increase the tax payable on the sale of investments and second homes. Other suggestions include reducing the CGT annual exemption or restricting Business Asset Disposal Relief.

Inheritance Tax (IHT) could also be tightened. The government might extend the period before gifts fall outside an estate, reduce reliefs, or lower the private residence nil-rate

band. Similarly, savings/investment allowances such as ISAs could be trimmed or frozen, which would quietly raise additional revenue as inflation erodes their real value.

A difficult fiscal backdrop

Public finances remain stretched. With borrowing high and economic growth subdued, the government is thought to be seeking £20-30 billion in additional tax or spending cuts. Because increasing headline rates would break election promises, the most likely route is through freezes and incremental changes that gradually bring more taxpayers into higher band, the classic “stealth tax” approach.

What this means for clients

For clients holding high-value property, planning asset disposals, or managing large investment portfolios, these possibilities underline the importance of a pre-Budget review. Some may wish to complete disposals under current CGT rates, while others might explore pension top-ups or gifting strategies while existing reliefs remain.

Business owners, directors and professional partners should also monitor how any structural or partnership reforms might affect their remuneration and tax exposure.

Take advice before making changes

It is important to stress that all of these measures are still speculative. Acting on rumour can create unintended tax consequences, particularly where timing and interaction with other reliefs are involved.

If you are considering a disposal, pension contribution, or business restructuring before the Budget, please contact us first. We can help you assess your position, model possible outcomes and ensure that any action taken fits your wider financial and tax plans.

If you feel this article could help a business colleague or family member, please feel free to share it with them.

With colder days on the horizon, many pensioners will soon receive their Winter Fuel Payment, a vital support when heating bills start to rise. But as that help rolls out, fraudsters are ramping up efforts to exploit it. Recent data shows scam referrals have leapt by a staggering 153 per cent over the last week of September compared to the week before.

The scam surge

These scams typically arrive via SMS or text message, with the fraudster posing as a government or tax official claiming you need to “apply” or “confirm details” to receive your payment. Recipients might be prompted to click a link, enter personal data or bank account details, or even make a payment upfront.

But here is the key point: you never have to apply or confirm anything. Winter Fuel Payments are made automatically to those eligible.

These messages had been trending down after a peak in June, but they are now increasing again just in time for payments to land in bank accounts next month. The timing is no coincidence.

Official warnings and advice

Pat McFadden, the Work and Pensions Secretary, issued a clear warning:

“If you get a text message about Winter Fuel Payments, it’s a scam. They will be made automatically so you do not need to apply.”

Jonathan Silvester, HMRC’s Digital Defence Lead, added that people should not let themselves be rushed. If someone pressures you to act immediately, it is a red flag. Never give personal or financial details or click on suspicious links or attachments.

Independent Age, a charity supporting older people, emphasised that scammers are targeting those already anxious about paying their bills. The messages can be unsettling, implying that the recipient must act to receive what is rightfully theirs.

What you can do

Here is how to protect yourself and how to help warn others:

1. Do not respond to texts asking you to “apply” or “confirm”. If a message mentions Winter Fuel Payments and asks you to do something, it is almost certainly fake.
2. Never share bank details or personal information. The government will never ask for that by text.
3. Forward suspicious texts to 7726. This helps telecom providers block the numbers.
4. Delete the message and do not click any links or attachments.
5. Report suspicious contact. For scams mimicking HMRC, forward emails to phishing@hmrc.gov.uk; for calls or texts, report via GOV.UK.
6. Check eligibility through the official government website if unsure. Payments are automatic and confirmed by letter in October or November.

Final thought

Each time the government offers new financial support, scammers see an opportunity. The Winter Fuel Payment is no exception. With the surge in scam texts, it is more important than ever to stay alert, understand how the genuine system works, and share the warning with friends and family. No one should lose money to a scam disguised as help.

The Chancellor’s Autumn Budget is only weeks away, and there is growing speculation that key tax reliefs and allowances could soon be reduced or restricted. Reports suggest that higher-rate pension relief, capital gains tax rates and dividend allowances may all come under review.

For business owners and higher-rate taxpayers, this could be a good time to review your position and take action before any announcements are made. Acting early could help preserve existing tax advantages and avoid being caught out by last-minute changes.

Pension top-ups may be worth reviewing

If you are a higher-rate taxpayer, topping up your pension before the Budget could be a sensible precaution. There is increasing talk that higher-rate tax relief may be replaced with a single flat rate of around 30 per cent. Making additional contributions now could therefore secure valuable relief while it remains available.

We can help you check how much unused pension allowance you have from the previous three years and confirm the maximum contribution that can be made without breaching the annual limit. Once the figure is agreed, you will need to contact your financial adviser to arrange the transfer of funds.

Consider dividend timing

If the Budget brings higher dividend tax rates or a further cut in the dividend allowance, taking available profits before the announcement could make sense. The timing of dividend payments is something that can be reviewed easily in advance, allowing you to decide whether an early payment would be beneficial.

Review planned disposals

There are also strong rumours that capital gains tax could be aligned with income tax rates from April 2026. If that happens, gains could be taxed at 40 or 45 per cent instead of 20 per cent. If you are considering selling an investment property, shares, or other chargeable assets, it may be worth reviewing the timing of any disposal now.

Make full use of current allowances

Now is also a good time to check that you have made full use of your ISA allowance, savings allowance and annual capital gains exemption for the current tax year. These smaller reliefs are often overlooked but can all add up.

Talk to us before the Budget

We recommend reviewing your position before the November Budget to ensure you are using every available planning opportunity.

Please get in touch if you would like us to review your pension contributions, dividend timing or planned disposals. A short discussion now could make a real difference later, and help you beat the Budget rather than being caught by it.

For many business owners and high value individuals, protecting family wealth is as important as creating it. Succession planning, deciding how ownership and control will pass on to the next generation, is no longer just a matter for the future. With possible changes ahead to inheritance tax (IHT) and Business Property Relief (BPR), this is an ideal time to review existing arrangements.

Family businesses often assume that shares or property will qualify automatically for IHT reliefs. However, the conditions can be strict. The business must normally be trading rather than holding investments, and the qualifying ownership period must be at least two years before death or transfer. If a company is mixed-activity or part trading and part investment, there can be uncertainty over how much of the value qualifies.

Similarly, property and agricultural enterprises that rely on Agricultural Property Relief (APR) need to ensure that land is being actively farmed and that ownership and occupation requirements are met. The rules are detailed and sometimes interpreted narrowly by HMRC.

Succession planning should therefore be treated as a continuing process rather than a single event. Reviewing company structures, shareholder agreements, and wills ensures that ownership passes smoothly and that tax reliefs are not lost. In some cases, establishing a family investment company or discretionary trust may be the best way to separate control from beneficial ownership and to protect wealth across generations.

It is also worth considering the role of pensions within succession planning. Pension funds usually sit outside the estate for IHT purposes, and nominations can be updated at any time.

A properly structured plan provides peace of mind for both founders and successors. It reduces the risk of disputes, ensures the right people are in control, and preserves as much family wealth as possible. Discussing your long-term plans with us now will help ensure that your business and family assets remain secure, compliant, and ready for the future.