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