Inheritance schemes via Business Property Relief

We are finding that the above schemes are being very well received by older clients and their families, especially as the qualifying period for IHT exemption purposes is only two years!

The following could benefit

1. Clients who are elderly or in poor health – Exempt from IHT after two years and money can be paid to executors to pay off IHT directly to HMRC.
2. Clients who want to keep control of their money – Clients remain in control of their money and can apply for withdrawals at any time.
3. Clients who want to set up a discretionary trust – If a client has held the scheme for at least two years, they can set up a trust without creating a lifetime transfer charge.
4. Clients selling a business – When a client sells their own BPR-qualifying business, the proceeds will be subject to IHT. Investment in the scheme will be immediately IHT free subject to re-investment within three years of sale. See more info at jumpforadan.com website.

Here are some bullet points

• Speed – A client’s investment should be exempt from inheritance tax after just two years, provided they still own them at the time of their death.
• Focus on capital preservation – The companies invested in, carry out a range of activities but target capital preservation and a modest return.
• Track record – One firm in particular has achieved its target return every year since inception; the product was launched in May 2007.
• Control and access – Clients retain access to 100% of their money, subject to liquidity. The companies aim to give clients access to their money within a month of their request.
• Flexibility – Clients can let their investment grow or take a regular income in the form of capital withdrawals
• Simplicity – There are no complicated legal structures, no trust administration and no underwriting
• Deferred and contingent fees – Some companies will not take annual management charges unless growth targets (say 3% a year) are reached.

Risk warning

Please note that capital is placed at risk and investors may not get back the full amount invested. Associated tax treatment depends on the individual circumstances of each investor and may be subject to change. Past performance is not a reliable indicator of future results and any forecast is not a reliable indicator of future performance. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status. The funds normally invest in small unquoted companies which are likely to have higher volatility and liquidity risk than shares quoted on the London Stock Exchange Official List.

Last updated on Oct 14th, 2021 by
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