Setting Up a Family Investment Company- the Right Way
A Family Investment Company (FIC) lets you hold and grow assets within a company structure, gift future growth to your children, and reduce your Inheritance Tax exposure. We handle everything from Companies House formation and shareholder agreements to corporation tax compliance and long-term estate planning, built entirely around your family’s goals, not a generic template.
- Fixed Fees
- FIC Structure Specialists
£2.4m+
Tax Saved for Clients
HMRC
Compliant
50+
Five-Star Reviews
Property
Tax EXPERTS
Fixed Fee
No hidden charges
25%
Corporation Tax on FIC Profits
Who We Are
UK specialists in Family Investment Companies for property owners
For property-owning families, the FIC has become one of the most powerful and widely-used Inheritance Tax planning tools available.
At UK Property Tax Accountants, we design, incorporate, and manage Family Investment Companies for property investors across the UK. Our team handles the full process from initial IHT modelling and share class design through to company incorporation, Articles of Association, ongoing Corporation Tax compliance, and integration with your wider estate plan.
Full IHT modelling to quantify the benefit of the FIC structure for your family
Company incorporation, Articles of Association, and all HMRC registrations managed from day one
How an FIC Works
How a Family Investment Company reduces Inheritance Tax and transfers family wealth
Parents make an initial loan to the FIC, typically £500,000 upwards, which the company uses to acquire property or other investment assets. Parents retain full control through voting shares, while children hold ordinary shares that capture all future growth outside the parents’ estate. Profits are subject to Corporation Tax at 25%, rather than up to 45% income tax personally, and dividends can be distributed to family members at a time and amount the parents choose as directors.
Our family investment companies service structure your FIC to ensure the loan, share classes and dividend policy are correctly drafted from day one, minimising tax exposure at every stage and keeping HMRC fully satisfied.
0%
IHT on Gifts After 7 Years
100%
Compliance Rate
Share Classes and Control
Flexible Share Structures and Income Control for Your Family
The share structure of a Family Investment Company is fully customisable. Parents typically hold A shares with enhanced voting rights and the power to appoint and remove directors, ensuring they retain complete control over investment decisions and distributions for as long as they choose. Children and grandchildren hold B, C, or D shares which carry economic rights entitlement to dividends and capital on a winding up but no voting control.
This alphabet share structure means that as the company accumulates value through property appreciation and rental income, that growth flows to the younger generation’s shares rather than increasing the parents’ taxable estate. Dividends can be declared on individual share classes independently, allowing income to be directed to family members who pay tax at lower rates. We design the share structure with your specific family circumstances in mind, ensuring it reflects your succession intentions and is robust enough to withstand HMRC scrutiny.
NRCGT returns filed within 60 days for all UK property disposals by non-residents
Common Pain Points
The FIC Planning Mistakes Families must Avoid
A Family Investment Company is a sophisticated structure that delivers significant benefits when correctly designed but there are common errors that can reduce its effectiveness or create unexpected tax costs.
Transferring Existing Property into the FIC
Transferring property you already own into a Family Investment Company triggers SDLT on the market value of the property, as well as a potential Capital Gains Tax disposal. For most families, it is far more efficient to fund the FIC with a cash loan which is then used to make new acquisitions.
Incorrectly Structured Shareholder Loans
The loan from the parents to the company must be properly documented and charged at a market rate of interest where required. An incorrectly structured loan can create income tax charges on the parents and undermine the IHT planning effectiveness of the structure.
Using an FIC Where a Trust Would Be More Effective
In some circumstances particularly where the family wishes to benefit grandchildren or more distant relatives a discretionary trust may offer more flexibility than an FIC. We provide honest, comparative advice on all available structures rather than recommending an FIC in every case.
Failing to File Annual Corporation Tax Returns
The FIC is a limited company and must file annual accounts and Corporation Tax returns with HMRC and Companies House. Failure to maintain these filings results in penalties and director disqualification risk. We manage all compliance obligations as part of our ongoing FIC management service.
Overlooking the Impact of the 2026 IHT Changes
Where property is held jointly by spouses or civil partners, both partners have their own annual CGT exemption of £3,000. Failing to ensure the gain is allocated between both parties means the second partner’s exemption is wasted entirely.
Free No-Obligation Review
Let’s discuss your property accounting needs
Book a 30-minute consultation with a specialist. We’ll review your current structure and identify immediate opportunities.
- HMRC-compliant tax strategies
- Specialist UK property tax expertise
- Proactive planning, not just compliance
- Fixed-fee, no hidden charges
Our Services
Our Family Investment Company services — Key Areas We Cover
From initial IHT modelling through to company incorporation, share class design, and ongoing Corporation Tax compliance, we provide a complete FIC service for UK property-owning families.
IHT Modelling and FIC Feasibility
Full calculation of the Inheritance Tax saving available through a Family Investment Company, modelled over a 10 and 20-year horizon. We quantify the benefit clearly before you commit to any cost of implementation.
Share Class Design and Articles of Association
Bespoke design of the FIC’s share structure, including voting rights, dividend rights, and capital entitlement for each family member. We draft Articles of Association that reflect the family’s specific succession intentions and governance preferences.
Company Incorporation and Setup
Full incorporation of the Family Investment Company at Companies House, registration with HMRC for Corporation Tax, preparation of all initial board resolutions and shareholder agreements, and setup of the company’s bank account.
Ongoing Corporation Tax Compliance
Annual preparation and filing of the FIC’s Corporation Tax returns, statutory accounts, and confirmation statements, ensuring the company remains fully compliant with all HMRC and Companies House requirements.
Shareholder Loan Documentation
Assessment of eligibility for gift holdover relief on gifts of property, and rollover relief on proceeds reinvested in qualifying replacement assets. We calculate the deferred gain and ensure the relief claim is correctly documented.
Integration with Estate Planning
Review of the FIC structure within the context of the family’s wider estate plan, including the interaction with gifts, trusts, pension planning, and the use of the nil-rate band and residence nil-rate band.
How It Works
Get started in four simple steps
Changing accountants should be smooth and simple, not disruptive and difficult. Our skilled property accountants help you with every step of changing service providers so that your record-keeping and tax compliance remain intact.
Free Consultation
Tailored Proposal
Smooth Handover
Ongoing Support
Why UK Property Tax Accountants
Why Property Investors choose UK Property Tax Accountants
That singular focus means deeper expertise in non-resident landlord taxation, faster answers on international treaty questions, and better outcomes for every overseas landlord we work with.
Dedicated Named Accountant
You will always work with a single, named Chartered Accountant who knows your companies, your portfolio and your goals intimately, not a call centre or a rotating team.
ACCA Registered Auditor
Registered as auditors in the United Kingdom by the Association of Chartered Certified Accountants, providing you with expert advice you can rely on and trust completely.
Transparent Fixed Fees
You will never receive an unexpected invoice. All fees are fixed, all-inclusive and agreed upfront, with no hourly rates and no extra charges for additional advice or HMRC queries.
Proactive Tax Reviews
We run quarterly tax reviews throughout the year, not just at year-end, so your corporate structure and tax position are constantly optimised as your portfolio evolves.
Cloud Accounting Technology
As Xero Platinum Partners and QuickBooks Pro Advisors, we provide real-time financial visibility across your portfolio, fully MTD-compliant and accessible anytime, anywhere.
Full Ecosystem of Services
Beyond accounting, we offer cashflow forecasting, legal referrals, commercial mortgage broker introductions and contractor insurance, providing a complete professional ecosystem for your property business.
Client Stories
What our clients say about us
★★★★★
“UK Property Tax Accountant Team saved me over £18,000 in CGT when I sold two properties last year. Their knowledge of available reliefs is extraordinary. I strongly recommend them. Unlike my previous accountant, they picked up the phone every time.”
★★★★★
“We restructured our entire portfolio into a limited company on their valuable advice. The tax savings pay for their fees many times over and every decision was explained clearly. Moving to them was the best decision we made for our property business.”
★★★★★
“As a property developer I deal with complex VAT, SDLT and CIS issues on every project. They handle everything seamlessly and their proactive advice has saved us significant six-figure sums. Switching from our old firm was completely painless.”
FAQS
Commonly Asked Questions about Family Investment Companies
Can I transfer my existing properties into a Family Investment Company?
While it is technically possible to transfer existing properties into an FIC, doing so triggers SDLT on the market value of each property and a potential Capital Gains Tax disposal, which in most cases makes it uneconomic. The more efficient approach is to make a cash loan to the FIC and use that to fund new property acquisitions. We model both options and advise on the most cost-effective route for your specific circumstances.
What are the ongoing costs of maintaining a Family Investment Company?
The annual compliance costs for an FIC include the preparation of statutory accounts, a Corporation Tax return, and a Companies House confirmation statement. There are also ongoing costs for maintaining board minutes and any shareholder loan interest. We provide a fixed annual fee that covers all these obligations, so there are no unexpected costs.
Does UK Property Tax Accountants advise on the wider IHT planning around the FIC?
Yes. We review the FIC structure within the context of your full estate plan, including the interaction with any existing trusts, pension arrangements, lifetime gifts, and the use of the nil-rate band and residence nil-rate band. The FIC is most effective when it forms part of a coordinated estate planning strategy rather than operating in isolation.
Can a Family Investment Company hold assets other than property?
Yes. A gift of property is treated as a disposal at market value for CGT purposes, regardless of the fact that no money changes hands. The gain is calculated as the difference between the market value at the time of the gift and the original acquisition cost. However, holdover relief may be available in some circumstances for example, where the property is a business asset or is being gifted into a trust allowing the gain to be deferred rather than triggered immediately. We assess the CGT and Inheritance Tax implications of any proposed gift before it is made.
Do children who hold shares in a Family Investment Company pay tax on dividends?
Yes. Dividends paid to children who are over 18 are taxed at their individual marginal rate of Income Tax 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers, and 39.35% for additional rate taxpayers. Where children are under 18 and their dividends exceed £100 per year from parental gifts, the income is treated as the parent’s income for tax purposes under the settlements legislation. For this reason, FIC planning is most effective where the children are adults or where the primary objective is accumulating value in the children’s shares rather than distributing immediate income.
Still have questions?
Our property specialist accountants are ready to answer any questions about your specific tax situation with no obligation for an initial conversation.
- +44 121 262 1528
- Mon–Fri, 9am–5:30pm
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