What is a Family Investment Company?

A Family Investment Company is a private limited company set up to protect family wealth, hold assets and mitigate tax within HMRC rules.

  • 0% Corporation tax on existing retained profits
  • Loan funds back to your company
  • Invest in property or other asset classes
  • Retain business property relief
  • Lifetime legacy
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The 2023 Corporation tax changes

A Family Investment Company is a way to safeguard and grow your wealth in a tax-efficient manner, within HMRC rules, ensuring that it is protected from an extensive inheritance tax bill for your family. It is an efficient vehicle for saving tax and supporting innovative strategies, not suitable for implementation via your trading company.

A Family Investment Company is set up similarly to any other company, but with different rules applied to ensure the company invests, as opposed to trades. It is also setup to the benefit of your family, although they do not make decisions; its setup is such that you are in total control.

Various rules and strategies dictate different ways in which the company works, saving tax and supporting innovative strategies, not suitable for implementation via your trading company.

Cash or assets can be transferred to, and held within a Family Investment Company. Any profits that are made are then liable for corporation tax, as opposed to capital gains or income tax, as would otherwise be the case. This alone, creates significant tax advantages when compared with those of the individual. A Family Investment Company is at its most effective as part of a Lifetime Business Tax Plan, which can radically mitigate tax.

Inheritance

For business owners, the Family Investment Company is a more appealing alternative to a traditional trust arrangement, providing extensive flexibility and inheritance tax advantages. It is a tax-efficient way to protect wealth, hold assets and pass them down through the generations. It also simplifies succession.

Control

A Family Investment Company allows you, the company director, to maintain full control. This is dictated by the way the company is set up. All decisions and control of the company are managed by you, for example paying dividends. This could be as a form of income or to other members of the Family Investment Company. Other members are not decision makers. The Family Investment Company is flexible, meaning that it can be tailored to meet your individual situation and altered with time, as necessary and as you decide.

Just some of the unique extent of a Family Investment Company…

  • Safeguard Assets
  • Ensure the family is looked after during your lifetime and beyond
  • Growth and protection of the family legacy
  • All assets and funds are still under the control of the company director
  • Funds and assets can be moved flexibly to fit individual strategies
  • Full control means changes can be made as the family changes
  • Inheritance is streamlined
  • Beneficiaries are already part of the Family Investment Company
  • Paperwork and legal wrangles and charges are avoided
  • Inheritance tax is mitigated
  • Tailored succession plans can be created
  • Changes to the family structure can be replicated within the Family Investment Company, for example due to divorce or new family members.
  • Property can be held within the Family Investment Company
  • Can be used for Buy-to-Let company formation

The Family Investment Company and Property

If you are looking at purchasing a Buy-to-Let property portfolio then a Family Investment Company is the ideal vehicle.  This puts your assets within a tax-efficient and ring-fenced environment, protecting you and your family from excessive tax implications. Business owners and their families can take advantage of property market growth, ensuring long-term advantages. This can also be coupled with a Small Self-Administered Scheme to further achieve tax efficiency, investment potential, and flexibility. Whilst you, the company director, retain control, should the worst happen you avoid leaving the extensive inheritance tax bill your family would be faced with, should you not have a Family Investment Company in place.

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What our clients say

jonathanwaters1953
jonathanwaters1953
26/07/2023
We have recently used this excellent company to set up a Family Investment Company. The complete process was seamless with our personal contact Jordan Sharpe explaining all the steps along the way in a very confident and professional way. They really do deserve this 5 star review.
Keith Jones
Keith Jones
26/06/2023
Tlp have been fantastic with there advice and help in setting up my retirement plans , putting structures into place to help with future generational hand over of assets, great advice from Jordan Sharpe, easy to deal with and always on hand for help when needed, well done all, 👏 ✔️
Stewart Yardley
Stewart Yardley
05/06/2023
Trustworthy Financial Advice with an Eye on the Future. I recently sought financial advice, and trust was my top priority. TLP not only met my expectations but exceeded them. Although their product didn't suit my current needs, their dedication to providing comprehensive information and support left me confident in utilising their services in the future. TLP's commitment to customer satisfaction was evident from the moment I approached them. They patiently and thoroughly discussed all available options with me, ensuring I understood the pros and cons of each. Despite not making an immediate sale, they generously shared their time and expertise, demonstrating a genuine interest in helping me make the right decisions. What impressed me the most about TLP was their transparent and honest approach. They didn't try to push any product on me that wouldn't serve my current financial situation. Instead, they focused on empowering me with the knowledge I needed to make informed choices. Their willingness to prioritise my needs over immediate profits spoke volumes about their integrity. I left my interaction with TLP feeling informed, confident, and assured that when the time is right, they will be my go-to financial advisory service. The trust they have established with me through their professionalism, dedication, and genuine care for my financial well-being is unparalleled. I have no hesitation in recommending TLP to anyone seeking trustworthy financial advice.
Robert Sidebottom
Robert Sidebottom
25/05/2023
I was looking at setting up a Family Investment Company, during which I’d paid more than a few hundred pounds for a couple of Consultations. After which I’d received some rather expensive quotes for setting it up, as well as getting lots of complexed information about the process. Then I eventually stumbled across TLP while doing some related research. I was pleasantly surprised and more than pleased that they offered a No cost consultation. During which Lewis Jones, was able to simplify all the information and subsequently provide a much more realistic quote for the process. Not to mention the first year’s company accounting services that came for free and the ongoing advice from Lewis. Which has not only been financially beneficial, but as proved to be a great source of knowledge and education, responding to all my questions promptly. With my background not being in the financial and investment sector, his clear explanations put in a context that I was able to understand, has been invaluable.
Geoff Saunders
Geoff Saunders
22/05/2023
Great support all the way through the process very professional good knowledge and friendly service. I would highly recommend
Andew Clymo
Andew Clymo
21/02/2023
From the start of the transfer to the end TLP have been always available to me, they have kept me informed throughout the process and offered help and guidance when required. Excellent service that is highly recommended
Andy Page
Andy Page
25/01/2023
Now fully set up with a Landlords pension and very pleased with the overall service. Only delays were with AVIVA not playing ball but now all done and set to earn significantly more than with AVIVA. Jordan Sharpe was knowledgeable and guided me through the whole process with a professional and friendly approach. Morwena (assistant) was again very friendly and together made the process a simple one. Looking forward to a better retirement (eventually) thanks to TLP.

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