Charles Russell Speechlys says inheritance tax changes taking effect from 6 April 2026 may push more families to consider Family Investment Companies as part of succession planning. The firm says the structure can move future growth to the next generation while founders keep control.
It says Family Investment Companies can be used to invest family wealth and grow it, with future growth and potentially some initial capital passed on for inheritance tax purposes. The firm also says founders can retain a high degree of control over investment decisions and distributions, including at board and shareholder level.
Charles Russell Speechlys on FICs
The firm says families, business owners, entrepreneurs and high-net-worth individuals are reassessing whether a Family Investment Company fits their wider estate plan. It says that is happening because creating a trust can trigger an immediate inheritance tax charge, while a Family Investment Company may let assets of greater value move without that charge.
Charles Russell Speechlys says Family Investment Companies are increasingly being used where trusts are not suitable. The firm also says a Family Investment Company is subject to the same corporation tax rules as any other company, with shareholders taxed under the normal tax rules when value is extracted.
Inheritance Tax and trust charges
From 6 April 2026, the firm says transferring relieved property into trust above an individual’s 100% relief allowance may face an upfront inheritance tax charge. It says the effective rate on relieved property above £2.5 million is 10%, while non-relieved assets would broadly face 20% above the nil rate band.
That creates the central trade-off for families weighing the structure. A Family Investment Company can reduce inheritance tax exposure over time and preserve control, but profits are effectively taxed twice, with corporation tax on the way in and income tax on extraction.
FICs and succession planning
Charles Russell Speechlys says UK dividends received by a Family Investment Company are generally exempt from corporation tax. Even so, it says there is no special tax regime for the structure.
As inheritance tax rules continue to change, families are looking at whether a Family Investment Company belongs in their estate and succession plan. For readers weighing that option, the practical question is not whether the company removes tax entirely, but whether the control and timing of tax charges fit the assets they want to pass on.
