Interest grows in Heritage IHT (FT Advisor)

by Simoney Girard

The chief executive of Puma Investments, a division of Shore Capital, also said the Heritage IHT product was on the hunt for more potential transactions to expand its portfolio.

“Traditionally, advisers have used various gifts and trusts to help their clients mitigate their tax bills on death,” he said, “but this has not allowed the investor flexibility over their money or control.

“Increasingly, advisers are finding that clients want to remain invested in a product that can help provide limited downside while preserving the wealth for future generations.”

The Heritage IHT strategy is to lend money to businesses against secured assets, such as pubs, care homes or property developments. This secured financing helps UK developers and builders provide accommodation or services, while aiming for a target of 3 per cent return per annum.

After two years, investors qualify for full IHT relief at 40 per cent.

In the past year, the team reviewed £400m worth of lending opportunities, but only conducted £20m of transactions. Mr Kaye said it was important to be ‘choosy’ when doing due diligence, but admitted that as interest in the product rises, the team will be looking for more strong opportunities for deals.


See the article on the FT Advisor website.