A Family Investment Company (FIC) is a bespoke family investment vehicle in the form of a company whose directors and shareholders are, usually, individual family members or those close to you.
An FIC can be used to hold a wide variety of assets including property and stocks & shares. It is a flexible investment vehicle that allows a family to determine how each member can benefit by defining the rights attached to each class of shares. If the company is correctly structured it allows the principal to retain control of the company by way of holding voting rights, however, allows the beneficiaries, usually the settlor's children, to hold income and capital growth shares. The effect is to remove the capital growth value of the company from the principal’s estate and pass this onto the beneficiaries, in turn reducing the total IHT that should be payable on death.