After years of rising house prices, government receipts for inheritance tax are increasing as more people are now facing an inheritance tax liability on their estate. Rising house prices, coupled with the inheritance tax nil-rate band remaining frozen at £325,000 until 2021, mean that BPR is an efficient relief and generally covers shares held in private and AIM-listed companies which do not undertake investment activities.
Investments which qualify for Business Property Relief (BPR) can play a role in your inheritance tax planning as, provided that the qualifying shares have been owned for at least 2 years at the time of death, they can be passed on free from inheritance tax.
Using BPR investments as part of your inheritance tax planning has many benefits compared with other options.
Faster inheritance tax exemption
If you make a gift to somebody or put assets in a trust, it will take 7 years before they will be exempt from inheritance tax. Shares in a BPR-qualifying company or investment become exempt from inheritance tax after being held for just 2 years, provided the shares are still held at the time of death.
Maintain access to the investment
Multi-discipline UK focused investment and asset management of renewable energy infrastructure companies and projects.
Other inheritance tax planning options, such as setting up a trust fund or using life insurance to cover the cost of a future inheritance tax bill, can be complex and may have significant establishment costs.
Investments are not suitable for everyone. Therefore, we recommend you seek professional advice before deciding to invest. Capital at risk, please refer to the investment memorandum for each specific opportunity and the respective risk warnings, seeking independent financial, legal and tax advice.