Family Investment Companies
Thinking about Family investment companies, what are the benefits?
Is a family investment company right for you?
Our team of London tax advisers regularly help families with the formation of family investment companies.
But, what exactly is a family investment company? A family investment company is simply a company that is set up to administer the family’s investments. They can be used as an alternative to a Trust.
Reach out to us
We’re here to help at the end of the day. Let’s find out what we can do to make your life that little bit smoother.
We asked our London Tax Advisory team a few questions on Family Investment Companies, this is what they had to say…
Why would you have a family investment company over a Trust?
The reason a family might opt for a family investment company over a Trust is simple, it’s just that it is a more familiar set up.
People are more comfortable with company structures than they often are of Trusts.
Family Investment Companies can be combined with Trusts to provide additional asset protection.
Who would usually set up a Family Investment Company?
Often family investment companies are set up by parents for their children or grandchildren.
The parents can be directors to ensure they retain control over the investments. Parents can retain a golden share that gives them overriding rights in votes.
What investments can a Family Investment Company hold?
They can hold any type of investment, but not assets that would qualify for Business Property Relief (i.e. not business assets, typically these would be listed shares and property).
What are the benefits of family investment companies?
What are the main benefits of family investment companies are:
- Growth in assets accrues to beneficiaries
- Companies can receive dividends tax-free so facilitates tax-free roll-up of income
- Sales of residential properties taxed at lower rates
- Interest fully deductible from rental income
- Control by virtue of being directors and voting shares
- The costs of managing investments is deductible from income arising, this is not always the case where investments are held personally
Tax advisers with an outstanding approach to client service
Our team’s approach is to develop long-term relationships with all our clients. We want our clients to feel valued and free to contact our partners, managers, and indeed all our team at any time. You will never be just a number in a database with us.
No question is too small, every question you have is an important one.
Your engagement partner will ensure regular contact is kept and will help build a good working relationship. They will get to know you, your business, and the people in it.
By really getting to know you and your business, we can quickly identify your requirements and this enables us to give you professional advice and guidance that is meaningful, and timely, in order to maximise the full potential of your business.
We believe one of the most important factors in considering your selection of an audit, tax or accounting firm, either in London, or the surrounding area, is the people you will be working with.
As a Partner led, and owned firm, we do not have a HR function, we don’t use talent acquisition teams or AI to pick our team. We have personally picked each and every member of our team based on not only professional qualification and experience, but also soft skills, how they communicate, build relationships, manage their time and we know that they are all fantastic – rest assured with our team of London Accountants you’re in great hands.
If you would like to arrange to meet a member of our team, on a free, no obligation basis, to discuss how we can help you and your business contact us or telephone us on 020 7870 9050. Or you can visit our web chat in the bottom right corner which is manned during office hours and you can leave a message out of hours.
The RPGCC team are always just a click or call away.