Business asset protection

FIDCO: Family Investment Company

Move £1m+ company assets. IHT free from Day 1.

Who is this for?

Directors of trading companies with £1m+ in surplus cash, investment property, shares, or investments sitting on the balance sheet.

If HMRC classifies you as an “investment company” you lose Business Property Relief.

How it works

Set up Fidco
A new limited company owned by your family.
Transfer assets
Move £1m+ from your trading company to Fidco. This can often be done with no immediate tax.
You stay in control
You and your fellow directors become directors of Fidco in a nominee capacity. You are effectively the trustees.
Manage for family
Assets are held and invested for the benefit of your family. You can charge a reasonable fee.

Key benefits

IHT free from day 1: No 7-year waiting period. Assets from a company are immediately outside your estate.
Protect Business Property Relief: Removing surplus cash and other investment assets helps your company maintain its trading status and keep 100% BPR on shares.
Asset protection: Ring-fenced from trading risk, legal disputes, creditors, and matrimonial settlements.
Investment control: Invest in property, shares, or other assets inside Fidco.
Access to cash: Money can be loaned back to the trading company on commercial terms.

Typical client

John has £3m surplus cash in his engineering company plus 2 investment properties. He transfers the cash and properties to Fidco. His trading company now qualifies for BPR. The £3m plus investment properties are IHT free from day 1 for the benefit of his children (beneficiaries).

Book Your Free Fidco Consultation

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30-minute confidential call. No obligation.