The role of Business Relief (BR) as an Inheritance Tax (IHT) planning tool will become even more important over the next two years, according to research with 100 UK financial advisers and wealth managers, by TIME Investments, which specialises in tax-efficient investment services. The findings are published as TIME Investments, in conjunction with Intelligent Partnership, launch a new comprehensive guide to BR for advisers to help them provide the right solution for their clients: DOWNLOAD HERE.
The research shows that the majority (79%) of advisers expect to see an increase in the use of unquoted BR in IHT planning over the next two years. Additionally, 85% expect to see the use of AIM listed companies that qualify for BR increase over the same period. Furthermore, 60% of advisers said that over half of their clients over 50 would benefit from BR solutions.
The growing challenge of managing IHT liabilities is highlighted by new HMRC figures, which show that IHT receipts hit £7.5 billion for the most recent tax year (2023/24) an increase of £400 million from the previous year. IHT receipts have consistently risen over the last decade, increasing by 120% from £3.4 billion in 2013/14 to this year’s record taking.
Henny Dovland, Business Development Director at TIME Investments said: “We believe that BR is a vital component of any adviser’s IHT planning toolkit and our research supports this. The flexibility and control it offers clients is critical, especially in these challenging economic times as IHT receipts continue to climb, and it can work well alongside other IHT planning services to give bespoke solutions that really work for individual needs. The new guide is intended to equip advisers with everything they need to be comfortable using BR and the knowledge of how to use it at the right time for the right client.”
The technical guide is created by Intelligent Partnership, a leading independent tax-efficient research house, and sponsored by TIME Investments. It offers practical advice for financial advisers and paraplanners covering all areas of IHT, estate planning options and BR.
The guide covers:
- Insight on the IHT landscape
- Support on due diligence best practice
- Dozens of practical case studies showing BR in action
- Guidance on how to compare positive impact credentials
The newly launched Fourth Edition of the guide offers a brand new section with expert commentary from industry leaders focussing on BR through the lens of Consumer Duty.
You can access the guide here.
TIME Investments’ market-leading IHT service, TIME:Advance, was launched over a decade ago and has over £1 billion assets under management. The service offers a simple and effective IHT solution, using BR to potentially offer an exemption from IHT after just two years. It targets net returns between 3% and 4.5% per annum.
TIME:AIM is an IHT planning service that offers a carefully selected and professionally managed portfolio of BR qualifying AIM companies, giving investors the opportunity to obtain 100% exemption from IHT after just two years. The shares are also ISA qualifying, which makes the service ideal for advisers looking to transfer their clients’ ISAs into a BR qualifying investment.