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900 million more reasons to focus on Inheritance Tax (IHT) planning: OBR projections for IHT collections increased

On the same day as the keenly anticipated announcements during the recent Budget, the Office for Budget Responsibility quietly revised their Inheritance Tax (IHT) forecasts, with expected revenues from IHT in the next five years being increased by £900m from the previous estimates provided in March 2017. It is now estimated that the amount of IHT collected by HMRC will rise to £6.5bn in 2022-23.1

Once only an issue for the very rich, an increasing proportion of wealthy Britons are now being caught, with IHT predicted to hit 1 in 10 deaths by 2018. With the number of UK families paying Inheritance Tax (IHT) now at a 35 year high2, IHT planning is becoming a pressing concern for clients and advisers alike.

With the nil rate band frozen since April 2010 and asset values rising, many homeowners will breach their nil rate band simply as a result of the value of their primary residence, with cash savings and investments then being hit by IHT. Various means of mitigating IHT liability exist; however, many of these are complex and leave the client without access to their money. Business Relief (BR) is a relatively simple alternative, which allows clients to maintain control of their funds, and renders the investment exempt from IHT after a minimum holding period of two years.

Puma’s new offering, the Multi-Strategy Estate Planning Service (EPS) is a discretionary portfolio service providing access to a range of strategies that intend to qualify for BR. Investors will benefit from our team’s 20+ year track record of investing in UK businesses, with the service drawing in particular from our expertise across the spectrum of BR qualifying investments, from Private Trading Companies through to equity investments managed by Puma Investments’ award winning AIM team. 

Investors can choose to place their funds in either Private Trading Companies or AIM shares, or a combination of both, with monthly access to funds (subject to liquidity and 30 days’ notice). An optional two year life protection policy3 is available for investors, up to the age of 90 years and three months4, wishing to mitigate the potential impact of IHT in the first two years of their investment.

For more information, call our Business Development Team on 0207 408 4070 or visit www.pumainvestments.co.uk/advisors-puma-multi-strategy-eps

    

1 Source: HM Revenue & Customs

2 Source: Financial Times

3 Medical exclusions apply

4 At the date of investment

 

An investment in the service carries risk and may not be suitable for all investors. Investors should refer to the Investment Details and Client Agreement, copies of which are available on pumainvestments.co.uk

Below are the key risks of the service:

• Past performance is no indication of future results and share prices and their values can go down as well as up. Any forecast is not a reliable indicator of future performance.

• An investment in this service can be viewed as high risk, we recommend you seek your own independent advice. Investors' capital may be at risk and investors may get back less than their original investment

• Tax reliefs are not guaranteed. Tax relief depends on individuals’ personal circumstances, minimum holding periods and may be subject to change

• An investment in the service should be considered a long-term investment

• This is a potentially illiquid investment. It is unlikely there will be a liquid market in the shares, it may prove difficult for Investors to realise immediately or in full the proceeds from the sale of shares

This communication is a financial promotion issued by Puma Investments in accordance with section 21 of the Financial Services and Markets Act 2000 (“FSMA”). If you intend to forward on this communication, you must take responsibility for its issuance and/or its approval, in line with the financial promotion rules.Puma Investments is a trading name of Puma Investment Management Limited which is authorised and regulated by the Financial Conduct Authority (FRN 590919)