Family investment companies: key lessons for families planning for the future
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In FT Adviser, Partner, Clare Stirzaker and Senior Associate, Laura Cullinane, together with Rebecca Reading of Lewis Golden, explore the growing use of family investment companies (FICs) as a succession planning tool and the practical considerations families should keep in mind once a structure is in place.
The article highlights the increasing popularity of FICs following recent changes to inheritance tax reliefs, with many business-owning and entrepreneurial families viewing them as an attractive way to hold, grow and pass on wealth while retaining some control. While FICs can provide tax efficiencies and flexibility, Clare and Laura emphasise that their long-term success depends on much more than the initial set-up.
Clare and Laura outline five common surprises that emerge after incorporation. These include the challenges of managing family members with differing investment objectives, the ongoing governance and administrative obligations involved in running a company, and the importance of understanding how an investment company differs from a trading business.
The article also cautions against allowing tax considerations to drive decision-making. Families should ensure that a FIC aligns with their wider commercial objectives, cashflow requirements and succession plans, rather than viewing it as a standalone tax solution.
Finally, Clare and Laura stress that FICs require ongoing review as family circumstances evolve. Regular governance discussions, succession planning and professional advice are essential to ensure the structure continues to meet the family’s objectives and supports future generations.
The full article was published by FT Adviser in August 2026.
