A discretionary managed service, created to support advisers in the process of growing a legacy free from inheritance tax.
Our Inheritance Tax Services are backed by Business Relief legislation, which means that investors can 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.
Our Stellar Growth Inheritance Tax Service involves the creation of a privately owned company for each client, providing access to a range of qualifying business activities that offer security and diversification – whilst also seeking capital growth.
This diversified Inheritance Tax Service is unique within the Stellar portfolio, as it involves creating one solely owned Personal Trading Company that invests across a range of different Investment Sectors – including Commercial Forestry, Hotels, Bridging Finance, and Residential and Commercial Property Development.
This service is structured differently from other estate planning portfolios, because we incorporate a Personal Trading Company in each investor’s name and they become the sole shareholder – enabling full control of the investment.
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.View our recent performance
Introduction to Growth
Watch our video below for a brief explanation of the Stellar Growth Inheritance Tax Service.
Click on the following links to access our useful resources.
Reasons to Choose Stellar Growth IHT Service
Relief from IHT after two years
Offers the widest range of qualifying business activities
Invest in own company, to ensure full control
Provides confidence and reassurance, today and in the future
Offers uncapped returns from qualifying business activities
Targeted returns of 5% per annum (net of fees)
Our Investment Strategy
- Once a name has been chosen for the Personal Trading Company, we will incorporate it and issue shares in accordance with the client’s wishes – then the two year qualification period for Business Relief begins.
- We will also operate a bank account, and the subscription will be transferred to this account.
Please note, there is a minimum subscription amount for shares of £40,000, but no upper limit.
- From here, we will commit the Personal Trading Company to a range of qualifying business activities – each of which will be undertaken in partnership with other personal trading companies.
- We expect to be fully invested within 12 months.
- Arable Farming
An opportunity to benefit from both capital growth and Agricultural Property Relief
- Bridging Finance
Providing a regular source of income with strong levels of asset security
- Commercial Forestry
Offering stable and predictable returns – with all timber sales free from capital gains and income tax
- Commercial Property Development
Acquiring opportunities to develop land for commercial use – underpinned by a freehold or long leasehold interest
Owning and operating hotels across the UK, to deliver a regular source of annual income and capital growth
- Renewable Energy
Supplying a stable and predictable income – underpinned by the subsidies provided by the Government
- Residential Property Development
Sourcing opportunities to develop land for residential use – underpinned by a freehold or long leasehold interest
The Stellar Growth Inheritance Tax Service is carefully designed to provide real returns during an investor’s lifetime, as well as a tax-efficient legacy for their beneficiaries.
We aim to generate a target return of 5% per annum for each client’s Personal Trading Company. This graphic compares the three year projected performance of a savings account and government gilts with the Stellar Growth IHT Service.
- 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.
- The Stellar Growth IHT Service is higher risk than saving accounts and government gilts.
- After two years, a holding in the Stellar Growth IHT Service should attract 100% relief from IHT, provided the initial investment is held at the point of death.
- All returns are calculated using annual compounding and rounded to the nearest whole pound, where applicable.
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 Personal Trading Company, or any income derived from it, 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 businesses are not liquid so although an investor can request a withdrawal from their Personal Trading 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 the London Stock Exchange.
- Past performance is no indicator of future success.
Fees and Charges
|Initial Subscription Fee||1.5%|
|Management Fee||1% plus VAT|
|Administration Fee||0.5% plus VAT|
|Performance Fee||20% of excess above target return|
|Exit Fee (where applicable)||2% plus VAT|
To gain a full insight into our Stellar Growth IHT Service, explore the following resources:
- Document Downloads – featuring brochures, application forms and more
- Adviser Toolkits
- Independent IHT Liability Insurance Policy
For further information, complete the form to register for our Stellar Growth IHT Service email campaign.
Investing in Inheritance Tax Services carries risks and is not suitable for everyone, read more.
for more information
The Stellar Growth IHT Toolkit
We provide a number of tools to guide advisers on how to tailor our Stellar Growth Inheritance Tax Service for their clients. Please click below to view our specialised toolkits, featuring videos, case studies and more.
Independent Inheritance Tax Liability Insurance – Two Year Cover
For advisers recommending Business Relief, AIG offers a term assurance policy – specifically designed to cover any liability for inheritance tax in the first two years of planning.Find out more
Frequently Asked Questions on Stellar Growth IHT Service
Can BR be used with a Power of Attorney?
Yes, Business Relief (BR) investments allow the client and power of attorney to retain control of their capital and investments.
This is a distinct advantage over traditional IHT planning, such as gifts and trusts, which generally require the agreement of the Court of Protection.
It may be that the Court does not agree that making lifetime gifts or placing assets into a trust is an appropriate strategy for the client, as this will involve the client losing control of their capital.
Can clients access their capital?
While traditional solutions such as gifts and trusts may work for some, a disadvantage is that clients have to give up control or access to their capital for it to qualify for IHT relief.
One of the more effective IHT solutions is Business Relief (BR). This is a piece of government legislation offering IHT relief. BR provides clients with flexibility and capital growth, without capital falling outside of their estate.
Investing in assets that qualify for BR such as British forestry, hotels and residential developments, or stocks on the AiM Index, will fully relieve any IHT liability after just two years providing they are held at the time of death. In contrast, gifts and trusts, require seven years before they qualify for IHT relief.
Read the full story here about how Business Relief can give the client control and access to their capital.
What are the advantages of using BR over a trust?
Despite popular opinion, the tax advantages that a trust offers have been steadily reduced by successive governments over the past few decades. In 2006, the government announced reforms which meant that many assets which moved into trusts became subject to a 20% IHT levy. Not only that, in 2016, the government increased the income tax rate for dividends held in trusts and removed a 10% tax credit.
As a result, many advisers believe that families are going to lean towards a different approach to managing their inheritances via a trust.
As well as being able to obtain IHT relief up to five years faster than trusts, IHT planning using BR also offers investors greater security, does not take away control from their estate and also offers plenty of flexibility to the client. By mitigating several layers of risk, BR can be seen as the safer option for less experienced investors.
To find out more about BR and how it could work for a number of clients, get in touch with one of our experienced team members by clicking here or by calling 020 3907 6984.
Take a look at our wide range of 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.