Inheritance Tax Services

It is possible to avoid inheritance tax quite quickly by taking advantage of investments that should qualify for Business Property Relief.  These can be investments as a packaged product put together by an investment company, and after two years become exempt from Inheritance Tax and have some key advantages to the typical route of a trust. 



Inheritance Tax Service

  • Still have the ability to retain control further on in life, for example if there is a need for care later in life
  • Aims to provide a modest return
  • Exempt from inheritance tax after just 2 years

Putting assets into trust

  • You can sometimes lose control over the asset, meaning you might not be able to use the money for care down the line
  • Returns can be dependent on investments in trust, if any are made – it could be higher or lower
  • Exempt from inheritance tax after 7 years

Inheritance Tax Services

There are a number of companies that offer this service. Confusingly there are some that do this through investing in AIM shares, for more information on AIM shares see ISAs and Inheritance Tax  and avoid inheritance tax in two years.

On this page we’re looking at ones that aim to provide a way to invest that is:

  • Lower risk
  • Should secure IHT exemption after just two years
  • Aims to avoid losses
  • Aims to provide a modest return
  • Aim to take advantage of Business Property Relief

Business Property Relief

Business Property Relief has been around since the 1970s. It was originally introduced to ensure that family businesses could continue in the event of the owners death and would not have to be sold perhaps just to pay Inheritance Tax.  See HMRC website for more details. 

Today, investors can take advantage of this, but do not have to run or work in the business. This can be done by investing in a packaged product that normally invests in a series of businesses. Normally owning business is considered very high risk, but there are some companies that offer an Inheritance Tax Service to do this, and do it in a way that aims to avoid losses, and provide a modest return. 

The process is simple, you invest your money, which buys shares in a company, which is not listed on a main stock market, and after two years the investment becomes exempt from inheritance tax.

It is important to note, BPR is assessed by HMRC on a case-by case basis upon death, so there is no guarantee that the invest would qualify for BPR, but most through a carefully selected inheritance tax service do.

Inheritance Tax Service/Trading companies

Although it is possible to invest in stocks and shares in the AIM many people feel that this route is too risky for them. 

A lower risk alternative could be an Inheritance Tax Service. These invest in range of companies trading in more secure environments. Investment managers often set up companies using an established business model, and investors then buy shares in these companies, which should then qualify for BPR. 

The company itself will often trade in a number of sectors such as:

  • UK forestry
  • UK farming
  • hotel ownership and management
  • property development
  • renewable energy
  • secured finance
  • care homes

The aim of the company will normally be securing the invested capital, and providing a modest return. Effectively, keeping the sum invested and getting a humble return. These would be more suitable to a lower risk investor rather than someone more comfortable with AIM listed shares. 

If you want advice on how to reduce your tax, or have a question, or just want to have a chat about reducing you tax liability with a UK Qualified Independent Financial Adviser, then phone now on 01793 686393 or contact us online.