Personal Investment Company
A Personal Investment Company (PIC) is a private limited company used to hold and invest surplus profits from a trading business, personal savings, or other capital. PICs provide a tax-efficient environment to grow investments at lower Corporation Tax rates, defer personal Income Tax, and manage dividends flexibly over time.
What are the benefits?
Tax-Efficient Investment Growth
Profits reinvested within a PIC are subject to Corporation Tax (currently 19–25%) rather than Income Tax rates of up to 45%. This lower tax rate allows investment returns to compound more quickly than if held personally.
Flexible Income Management
A PIC allows you to control when and how you extract income, enabling you to choose the most tax-efficient timing and form of withdrawals based on your personal Income Tax position each year.
Estate Planning
A PIC can be set up with different share classes held by family members, enabling wealth to be distributed in a tax-efficient manner across generations, potentially reducing Inheritance Tax exposure.
Separation of Trading and Investment
Keeping investment activities in a separate company provides a clean separation from trading risks and simplifies the accounting and management of different parts of your financial affairs.
How can Zenus Tax help?
We advise on whether a PIC is the right vehicle for your specific investment and tax planning objectives
We model the after-tax returns in a PIC versus personal holding to quantify the benefit
We set up the PIC structure and advise on the appropriate share class structure for your family
We advise on the most tax-efficient way to fund the PIC from your trading company
Frequently Asked Questions
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