Key features of the Stellar Business IHT Service
Tax efficiency
Relief from IHT, and other tax planning opportunities.
Diversified
This is key to our investment approach and intrinsic to our service.
Control
Investments are made through the business, to provide full control.
Lasting legacy
Providing confidence and reassurance, today and in the future.
Uncapped returns
Offers uncapped returns from qualifying business activities
Business succession
Enabling the value of the business to pass to beneficiaries.
Investment planning
Opportunities to blend investment sectors to meet individual objectives.
The Stellar Business Inheritance Tax (IHT) Service is discretionary managed, designed to offer multiple succession planning and tax efficiency opportunities for business owners – free from inheritance tax.
Our Inheritance Tax Services are backed by Business Relief legislation, which means that advised clients should be able to pass capital to their beneficiaries with 100% inheritance tax relief, whilst also keeping complete control of their capital – as long as they have held the shares for at least two years, and at the time of death.
The Stellar Business IHT Service is created for business owners who are wishing to maintain or improve tax efficiency within their existing business – or by using the proceeds following the sale of their company. It could be relevant if a business has excess capital, and the owner is concerned that it may not qualify for certain tax reliefs; or if the business has realised a capital gain; or if it has been sold, and the previous owner wishes to maintain inheritance tax efficiency.
Key Benefits
The Stellar Business IHT Service provides clients with access to a range of qualifying business activities, which seek to qualify for a number of tax benefits – including Business Inheritance Tax Relief (BR), otherwise known as IHT Business Property Relief.
Investors will have full control over the selection of our qualifying business activities, so that their adviser can tailor their portfolio to suit their investment objectives.
Our Stellar Business IHT Service can also be tailored to the model of an investor’s current business, or an entirely new business altogether – ensuring an adaptable structure which fits all requirements.
Investing in our Inheritance Tax Services carries risks and is not suitable for everyone. Tax reliefs are subject to change and dependant upon personal circumstance. There is no guarantee that an investor will receive a full return. Please find further details of the risks here
Key documents
Supporting documents
Investing in Inheritance Tax Services carries risks and is not suitable for everyone,
click here for more information on the Risks of Investing.
Our Investment Strategy
Our Stellar Business IHT Service can be accessed in two ways – either via the client’s current business (Maintain Strategy) or by creating a new business (Enable Strategy). Whichever route is chosen – Maintain or Enable – the investor will retain full access to their capital, as well as using a company structure that they are familiar with.
The Maintain Strategy
An investor’s existing company will make investments across our range of qualifying business activities. This strategy is designed for active business owners who are:
- Concerned about exceeding working capital rules and the effect this may have on the tax-efficiency of their business assets; or
- Considering turning an investment business into a trading business, to qualify for additional tax reliefs.
The Enable Strategy
The proceeds from the sale of your business will be used to create a new Stellar Business Company (or Companies) which in turn will make investments across our range of qualifying business activities.
This strategy is designed for business owners who have recently sold all or part of a business and are seeking to:
- Mitigate or defer capital gains tax; or
- Maintain inheritance tax efficiency; or
- Benefit from Entrepreneurs’ Relief.
Target Return
We aim to generate a target return of 5% per annum for each Stellar Business Company from our range of qualifying business activities. Clients are able to select which of these activities they wish their Stellar Business Company to participate in, however this choice will affect the target return.
Please note that this is a target only and is not guaranteed. The target return is quoted before the effect of any adviser charges which will, if paid, reduce the target return.
Important Information
Risks
There are never any guarantees in the world of investment, so it’s essential that advisers make their clients aware of the risks. Our Inheritance Tax Services are not suitable for everyone, so here’s a summary of what an investor needs to know before getting involved – alternatively, click here for more information.
- The value of a Stellar Business company, or any income derived from them, can fluctuate.
There is no guarantee that the full value of an investment will be returned, or that sufficient investments in qualifying business activities will be made within the expected timetable, or at all. - Qualifying business activities are not certain.
Qualifying business activities may subsequently cease to qualify for Business Relief. In such cases, Business Relief could be lost or delayed. - Tax reliefs are not guaranteed
The rate of tax, tax benefits and tax allowances are subject to change and are also dependant on personal circumstance. Plus, any changes to what constitutes a qualifying business activity may have a material adverse effect on the value of the business, or Stellar’s potential to achieve the objectives of the service. - Conflicts of interest
The interests of one group of investors may not coincide with another, or an interest of Stellar. In the event of a conflict, Stellar’s investment committee will work to ensure it is resolved fairly and in lie with our conflict policy. - Investments are long-term and high risk.
Interests in the IHT companies are not liquid so although an investor can request a withdrawal from a Stellar Business company, there may be a delay. Exits are reviewed quarterly and there is no guarantee that an exit will be possible. Such interests are also considered to be higher risk than securities listed on LSE. - Past performance is no indicator of future success.
Fees and Charges
| Initial Subscription Fee | 1.5% |
| Consultancy Fee | Up to 2% of the amount invested |
| Dealing Fee | 1.5% |
| Management Fee | 1% (plus VAT) per annum |
| Administration Fee | 0.5% (plus VAT) per annum |
| Performance Fee | 20% of excess above target return |
| Exit Fee (where applicable) | 2% (plus VAT) |
Stellar AiM IHT Service
A discretionary managed portfolio that mitigates risk through a diversified selection of up to 40 AiM stocks. This service is available for advised clients, on many of the UK’s largest wrap platforms.
Stellar Bespoke IHT Service
Designed for sophisticated investors who prefer a tailored discretionary investment approach to improve tax-efficiency.
Stellar Growth IHT Service
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.
The Stellar ITS
A discretionary managed service designed for investors who wish to leave a legacy that is free from inheritance tax.