Over the years we’ve heard from many advisers and business owners concerned about the amount of cash they are holding in their business and looking for a way to use these reserves more efficiently. As well as poor returns for cash on deposit, holding significant surplus cash means shareholders are denied the full range of tax reliefs that the owners of trading businesses would normally have access to. This includes Business Property Relief, which affects the amount of Inheritance Tax that may be due when businesses are passed on. With TIME:CTC we believe we have found a straight forward, simple solution.
TIME:CTC has been designed to help businesses utilise or reinstate existing Business Property Relief, allowing them to potentially remove their Inheritance Tax liabilities. Our strategy allows business owners to maintain control of their assets, avoiding the need for trusts or to give away assets to obtain relief.
The dangers of profit retention in a business
Read our article on Financial Reporting Standard 102 (“FRS102”), covering how it may impact your clients’ and what the potential solutions are. Read the full article
In October 2015, TIME was awarded the prestigious ‘Best BPR Manager’ award at the 2015 Growth Investor Awards. This award recognises the top performing fund manager specialising in BPR qualifying investments and is judged on investment performance, product innovation and adviser outreach. Read the news story to find out more.
TIME:CTC works by moving excess cash back into trading activities, which in turn reinstates Business Property Relief. A business owner invests surplus cash into TIME:CTC where it is used to set up a bespoke company which participates in asset backed, qualifying trades. The investor is the sole shareholder of the new company and will also benefit from the support and specialist advice from our panel of Non-Executive Directors. This group of industry experts is fully independent from TIME, with members selected to join based on their strong knowledge and track record in specific industries. Details of current members of the panel can be found in our product brochure.
Once Business Property Relief is reinstated, often immediately, the company has the potential to reduce or remove any liability to Inheritance Tax. The specialist investment team at TIME targets trades in asset backed businesses, with no debt.
TIME:CTC focuses on capital preservation and a target return of 3.5% per annum. What’s more, TIME:CTC has one of the longest track records in its sector, having been running for over 19 years. To date, the team behind TIME:CTC has committed over £450 million to Business Property Relief qualifying trading projects.
TIME:CTC can offer investors:
An attractive, uncapped target annual return of 3.5%
A focus on capital preservation through a defensive investment strategy
A solution to reinstate BPR, often immediately and mitigate IHT
The opportunity to retain control of their investment
Access to the experience, market knowledge and hands-on business expertise provided by the expert team at TIME
Option of full encashment, should investors need access to their capital
TIME has an experienced investment team of 16 specialists who manage a range of funds with a value of over £500 million. The team focus on investing in asset-backed businesses including secured lending, renewable energy and self-storage.
Alongside our internal team of experts, TIME has established a fully independent panel of Non-Executive Directors, which provides additional industry sector expertise and corporate governance. Members are selected specifically for their strong knowledge of and track records in sectors in which we are likely to participate, and are independent of TIME. Further details, including information on the current panel of Non-Executive Directors is available in the brochure for TIME:CTC.
We recognise our solutions are not appropriate for all circumstances and it is important investors receive the right advice, which is why we recommend you seek independent financial advice before choosing to invest.
If you are an investor who’s interested in our investment opportunities and you don’t already have a financial adviser, you may wish to visit the independent comparison site unbiased.co.uk to find a professional adviser in your local area.
The value of an investment in this product can fall as well as rise and investors might not get back the amount they originally put in. The availability and extent of tax benefits depends on an investor’s personal circumstances, and is subject to change. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status. Neither past performance nor forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher volatility and liquidity risks than other types of shares quoted on the London Stock Exchange Official List. The information on our website is not intended to constitute investment, tax or legal advice. We recommend you seek independent advice before investing in our products.
For full details of the risks associated with TIME:CTC please read the product brochure, investment memorandum and application pack.