Family Investment Companies: Succession Planning Without Losing Control

Matthew Denney, Partner, and Andrew Knott, Director, explain how Family Investment Companies work. A Family Investment Company is a private company used to hold and manage family wealth. Family members own shares in the company, while the company's directors control investment decisions, which allows a family to pass on growth to the next generation, retain control over investments, centralise family wealth, and support succession planning. The session works through five practical scenarios, comparing: A straightforward gift of company shares, split between voting and non-voting shares Gifting shares alongside a loan back to the company Using a trust to hold shares, funded by a loan Combining a lifetime gift, a chargeable transfer to a trust, and redeemable preference shares Each scenario looks at the inheritance tax, capital gains tax, control, and divorce implications involved, to help you weigh up which structure might suit your circumstances. Bevan Buckland is Wales' leading independent firm of chartered accountants, with offices in Swansea, Haverfordwest, Pembroke, Cowbridge and Carmarthen. Get in touch: 01792 410100 mail@bevanbuckland.co.uk