About Our Inheritance Tax Services
Our Inheritance Tax Services (IHT) provide advisers with the option to mitigate inheritance tax after two years – as opposed to making their clients wait seven years to claim inheritance tax relief using trusts or gifts.
With our expert inheritance tax planning, we enable advisers to make this vision a reality – delivering a diverse range of services to ensure that investors can retain complete control of their assets throughout their lifetime.
We exclusively invest in activities that qualify for Business Relief, and our Inheritance Tax Services are designed to provide inheritance tax freedom for individuals and business owners – helping advisers to guide their clients on how to create a legacy for the next generation.
To learn more about our range of Inheritance Tax Services, please watch our video.
An Introduction to Our Inheritance Tax Services
We offer a range of managed portfolio services which focus on wealth preservation and seek to provide inheritance tax relief after two years.
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 Bespoke IHT Service
Designed for sophisticated investors who prefer a tailored discretionary investment approach to improve tax-efficiency.
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.
Stellar Growth IHT Service
This discretionary 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.
Reasons to Choose Stellar Inheritance Tax Services
Wealth preservation is at the forefront of our investment philosophy – and what inspires advisers to choose us when securing the best investment for their clients. Whether capital is invested within an AiM portfolio, an ISA, or one of our asset-backed portfolios, advisers can ensure peace of mind by minimising investment risk.
Relief from IHT after two years.
Active across a range of highly diversified investment sectors.
Choice of investment strategies
A variety of discretionary managed services focusing on wealth preservation.
Retain ownership and control
Lifetime control of, and access to, investment capital.
Low, transparent fees and uncapped returns.
Wide investment platform availability
Providing an alternate way to invest.
Our Investment Approach
Our investment methodology involves working in partnership with a diverse range of experienced sector specialists – generating investments across a variety of qualifying business activities, all of which can be underpinned by physical assets.
By securing an investor’s finances against a series of assets, we are able to deliver a more secure investment opportunity – not only meeting our investment mandate, but delivering tangible returns to an adviser’s clients.
Capital preservation is always at the core of our strategy, as we believe this helps to reduce risk – and the fewer the risks, the more protected the investment.
Learn more about our Investment Sectors.
Summary of Risks
Whilst we endeavour to mitigate as many risks as possible, there are never any guarantees in the world of investment – so it’s essential that advisers make their clients aware of the different potential outcomes. Our Inheritance Tax Services are not suitable for everyone, so here’s a summary of what an investor needs to know before getting involved – or alternatively, click here for more information.
- The value of a portfolio, or any income derived from it, can fluctuate.
There is no guarantee that the full value of an investment will be returned – the rate of tax, tax benefits and tax allowances are subject to change and are also dependant on personal circumstance.
- The shares of the companies in an IHT Service are likely to be more volatile.
These shares can be harder to sell and may go up and down more than those of larger companies quoted on the main market of the London Stock Exchange.
- The level of IHT relief may be restricted.
Although our intention is to help investors qualify for IHT relief after two years, there is no guarantee that this will be achieved or maintained. Business Relief is based on personal circumstance, and the Government may change the rules in the future.
- Past performance is no indicator of future success.
Explore Our Expert Partner Services
The landscape of inheritance tax planning can be complex, even for the most qualified financial adviser.
That’s why our award-winning intergenerational Partner Services programme aims to provide support from some of the UK’s leading professional service organisations. This approach empowers advisers to ensure that their clients:
- Maximise tax efficiency
- Retain control of and access to their capital during their lifetime
- Adopt a collaborative and multi-disciplinary approach to inheritance tax planning
- Enable their families to benefit from successful intergenerational wealth transfer
Find out more about our Partner Services.
Learn More About Today’s Inheritance Economy
With an estimated £1.2 trillion expected to pass down to beneficiaries in the next 5 to 10 years alone, discover how advisers can make the most of this opportunity in the current Inheritance Economy landscape.Find out more
Frequently Asked Questions About Inheritance Tax
Does inheritance tax apply on a person's property?
Inheritance tax applies to a client’s estate. The assets which form part of an estate include any property or business. Whether an individual’s property is applicable to a client’s property depends on who they leave the property to when they pass away, as well as the overall value of their estate.
The Residence Nil-Rate Band (RNRB) is an extra property allowance that allows people to leave their homes to family, free from IHT. Under the rules, if your client is passing their home to a direct descendant, they can benefit from an additional £175,000 as of the 2020-21 tax year – up from £150,000 in 2019-20.
The RNRB allowance only applies if the client leaves their home to a direct descendant – either a child or grandchild. Nieces, nephews or friends, for example, do not qualify.
Not everyone will qualify for the full allowance. If the total estate is worth more than £2 million, the extra allowance tapers off – falling by £1 for each £2 above the threshold.
For more information, watch our video on the Nil-Rate Band here.
What is the inheritance tax threshold?
Inheritance tax (IHT) is charged on the value of everything owned by your client after their death, in excess of the Nil-Rate Band (NRB) – which is a tax-free allowance, currently set at £325,000 per individual and £650,000 for married couples and civil partners.
Legislation introduced in 2016 offered qualifying estates an additional tax-free allowance known as the Residential Nil-Rate Band (RNRB), which was phased in over four years and now provides a further £175,000 per individual – on top of the standard NRB threshold. However, there are limitations on which estates are entitled to this additional threshold, and the relief is tapered for estates valued at over £2 million.
Any value in excess of the NRB, and the RNRB if relevant, is taxed at 40% – and the nature of this tax means that their beneficiaries are left to pay the bill. Added to this, rising house prices mean that more families than ever before are falling into the inheritance tax trap – which underlines the importance of careful inheritance tax planning.
What is Business Relief (BR)?
Business Relief (BR), formerly known as Business Property Relief (BPR), was introduced in 1976 to allow a business owner to pass on their business to family members, without incurring inheritance tax. Our Inheritance Tax Services seek to operate within this robust legislation.
BR is becoming increasingly popular to more traditional inheritance tax planning strategies. In many cases, it takes seven years before the assets that your clients pass on are entirely exempt from inheritance tax, and this usually involves a transfer of those assets during their lifetime.
For more information, download our guide to Business Relief.