What does a Family Investment Company cost to set up and run?
A FIC is a bespoke structure, and most of the cost is professional advice rather than government fees. Understanding what you are paying for helps you judge whether the tax and succession benefits justify it for your family.
What are the one-off set-up costs?
- Tax advice and modelling — reviewing your assets, family and objectives, and comparing a FIC with alternatives such as trusts.
- Bespoke articles of association setting out share classes, voting, dividend and transfer rights.
- A shareholders' agreement covering exits, deaths, divorce and dispute resolution.
- Incorporation at Companies House (a £100 online fee) and opening company bank and investment accounts.
- Loan agreements and board minutes documenting how the company is funded.
- Valuations, stamp duty and capital gains tax where existing assets are transferred in.
What are the annual running costs?
- Statutory accounts filed at Companies House and a full set prepared for HMRC.
- A corporation tax return (CT600) each year.
- A Companies House confirmation statement (£50 annual fee).
- CT61 returns each quarter if the company pays interest on founder loans.
- Dividend paperwork, board minutes and personal tax returns for the shareholders who receive dividends.
- Investment management fees, which apply whether or not the assets are held in a company.
When are the costs worth it?
The benefits of a FIC — 25% corporation tax on retained profits, growth passing outside the founders' estate and control retained through share classes — build over time. They tend to justify the cost where significant sums are being invested for the long term, often several hundred thousand pounds or more. For smaller amounts, simpler options such as gifts, ISAs and pensions may give a better result.
Frequently asked questions
It depends on complexity. Government fees are small; most of the cost is tax advice and bespoke legal documents. Ask for a fixed quote before work starts.
Annual accounts, a corporation tax return, a confirmation statement, dividend paperwork and, where interest is paid on loans, quarterly CT61 returns.
You can incorporate a standard company, but the protections and tax benefits come from bespoke articles and share classes, which standard documents do not provide.
There is no legal minimum, but running costs mean a FIC is usually only worthwhile for substantial long-term investments.
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