The majority (80%) of financial advisers expect the number of retail investors seeking help for Inheritance Tax (IHT) planning to increase over the next three years, according to TIME Investments’ annual IHT survey. TIME Investments provides market leading income funds and estate planning solutions to advised investors.
Over two thirds (69%) of advisers also predict an increase in the number of IHT products and investment solutions to be launched in the UK – compared to 63% last year. Three quarters of advisers predict growth in the use of Business Relief (formerly known as Business Property Relief) and 60% expect greater use of investment structures using AIM listed companies that qualify for BR, over the next three years to help people reduce their IHT liabilities. This is a significant increase on last year’s findings at 66% and 54% respectively.
To encourage investors to support UK businesses, the Government allows shares held in qualifying companies that are not listed on any stock exchange and some of those listed on AIM to qualify for Business Relief. This means that once owned for two years, the shares no longer count towards the taxable part of an inheritable estate and are free from IHT at point of death.
The accessibility of Business Relief investments and the range of investment opportunities available help to provide flexibility in IHT planning. Over half (51%) of advisers felt that the increasing use of Power of Attorney due to rising dementia rates would contribute to the growth in the use of these flexible IHT solutions.
However, almost three quarters (73%) of advisers also voiced concern that new IHT planning products will be launched by firms over the next two years that don’t have the appropriate track-records and expertise, yet only 29% always or regularly use a specialist Business Relief provider.
Henny Dovland, TIME Investments’ IHT expert comments: “As the nation’s IHT bill climbs year on year, this is an opportunity for advisers to build deeper relationships with their clients and their families. More investors need guidance through the complexities of estate planning and specialist tax-efficient investment solutions which capitalise on Business Relief. Our expert team has a track record of over 22 years of managing investment vehicles in this area.”
Andy May, from AGL Wealth in Glasgow, comments: “We are finding we are now discussing more and more, the use of Business Relief from trusted providers such as TIME Investments as part of our estate planning advice which complements existing rules such as gifting, use of Residence Nil Rate Band and trusts.”
New guide to Business Relief
TIME Investments has partnered with Intelligent Partnership to launch the second edition of its popular Guide to Business Relief which is now available. This free to access guide is designed to support both advisers new to Business Relief as well as those already familiar with it as an effective IHT planning route. The guide includes an overview of the Business Relief landscape, an update on changes with IHT including the recent Office of Tax Simplification (OTS) recommendations and helpful case studies demonstrating planning opportunities in action.
Research conducted by PollRight among 55 UK-based professional financial advisers during August 2019.
Posted: 09/10/2019 Categories: Inheritance Tax, News, Press, TIME:Advance, TIME:AIM, TIME:CTC