Business Relief (BR) has been an established piece of inheritance tax legislation since 1976, enabling qualifying assets that have been owned for at least two years to be passed on free from inheritance tax. Assets that qualify for Business Relief include agricultural land, forestry, trading businesses and certain qualifying companies quoted on AiM.
Inheritance tax planning using Business Relief enables assets to obtain relief more quickly than would be possible through trusts or gifts – and, perhaps most importantly, this is done in the investor’s name, so there is no loss of control over the capital.
All of the investment sectors offered through our Inheritance Tax Services are carefully selected to ensure that they qualify for Business Relief, and therefore full inheritance tax relief, after two years.Learn more about Investment Sectors
Business Relief as part of an estate planning strategy
Key benefits of investing in qualifying companies or assets:
Avoids giving away money
Investors can give their money away during their lifetime to reduce the value of their estate, but it’s not an option that many people feel comfortable with. However, with a Business Relief qualifying investment, investors keep hold of their wealth – as the shares are held in their name.
Gives the planned inheritance a chance to grow
Investing in qualifying companies means that investments have the potential to increase in value. As with any investment, there is risk – and investors could lose some or all of their money.
Becomes free from inheritance tax more quickly
Some people are put off by traditional estate planning strategies, such as making gifts or putting money in trust, as these typically take seven years before becoming fully exempt from inheritance tax. A Business Relief qualifying investment enables the shares to obtain 100% exemption after a holding period of just two years, as long as they are held at the time of death.
Read out more about our range of asset-backed Inheritance Tax Services
Stellar AiM IHT Service
A discretionary managed portfolio that mitigates risk through a diversified selection of 40 AiM stocks. This service is available for advised clients, on many of the UK’s largest wrap platforms.
Stellar AiM ISA IHT Service
The Stellar AiM IHT Service is also available for investment via an ISA, which enables investors to benefit from both Business Relief qualification and all ISA tax benefits. This service is also available on various wrap platforms.
Stellar Business IHT Service
A discretionary managed service which provides numerous succession planning and tax efficiency options for business owners – either following the sale of a company, or to invest excess company capital to maintain tax efficiency.
This discretionary managed service involves the creation of a privately owned limited company for each investor, to access a portfolio of asset-backed Investment Sectors – targeting 5% growth per annum.