The Stellar ITS is a discretionary managed service which is designed for investors who wish to leave a legacy that is free from inheritance tax. It provides access to a range of qualifying business activities that offer security and diversification, whilst seeking capital growth, in addition to qualifying for Business Relief.

All of these qualifying business activities are carefully selected for both their low-risk characteristics and ability to generate capital growth. The Stellar ITS operates across a range of different investment sectors including Commercial Forestry, Hotels, Bridging Finance and, Residential and Commercial Property Development.

You and your beneficiaries should benefit from 100% inheritance tax relief – provided that the portfolio is held for a minimum of two years, and at the time of death.

Key Benefits

Our inheritance tax services are backed by Business Relief legislation, meaning that you can pass capital to your beneficiaries with 100% inheritance tax relief, whilst also keeping complete control of your capital – as long as you have held the portfolio for at least two years, and at the time of death.

The Stellar ITS is a discretionary managed portfolio which commits your capital to a range of investment sectors that offer security and diversification. It has also been designed to provide capital growth, in addition to relief from inheritance tax as described above.

All of the qualifying business activities are carefully selected for both their low-risk characteristics and ability to generate growth. Please note that there is a minimum subscription amount of £25,000, but no upper limit.

How it Works

Structure

When you invest in the Stellar ITS we set up a discretionary portfolio in your name, which then invests in a range of qualifying business activities through IHT Companies.

You are the beneficial owner of the shares in the IHT Companies, which are held through a nominee, so that you keep control of your capital.

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.

Click on the following links to access our useful resources.

Reasons to Choose the Stellar ITS Service

Tax efficiency

Relief from IHT after two years.

Diversified

Investment in assets across a wide range of qualifying business activities.

Control

Retain ownership of investments, to provide full control.

Lasting legacy

Provides confidence and reassurance, today and in the future.

Uncapped returns

Offers uncapped returns from qualifying business activities.

Growth

Targeted returns of between 3% and 4.5% per annum (net of fees).

Performance Comparison

The Stellar ITS is designed to provide real returns during your lifetime, as well as a tax-efficient legacy for your beneficiaries. This graphic compares the three year performance of a savings account, government gilts and the Stellar ITS, assuming it meets its target return.

Please note:

  • The Stellar ITS is higher risk than saving accounts and government gilts.
  • After two years, a holding in the Stellar ITS 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.

Our Investment Strategy

  • Offering security and diversification, the Stellar ITS Service commits each client’s capital to a range of investment sectors, as well as providing relief from inheritance tax.
  • When you invest in the Stellar ITS we set up a discretionary portfolio in your name, which then invests in a range of qualifying business activities through IHT Companies. You are the beneficial owner of the shares in the IHT Companies, which are held through a nominee, so that you
    keep control of your capital.
  • The qualifying business activities are carefully selected for their ability to provide capital security and generate capital growth. The target return is between 3% and 4.5% per annum (net of fees). 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, if paid, will reduce the target return. Please refer to the Terms to see how adviser charges may reduce the target return.
  • We choose to invest in a diverse range of qualifying business activities, all of which are underpinned by physical assets. Capital preservation is the focal point of our strategy because we believe this helps to reduce risk.

Important Information

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 portfolio of IHT companies, 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 you can request a withdrawal from your portfolio, 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. 
Initial Subscription Fee 2.0%
Dealing Fee 1.0%
Management Fee 0.5% plus VAT subject to Investors achieving a minimum performance of 3.5% per annum.
Service Fee 1.5% plus VAT

Next Steps

To gain a full insight into the Stellar ITS Service, explore the following resources:

For more information, complete the form to receive further insight into the Stellar ITS Service.

Investing in Inheritance Tax Services carries risks and is not suitable for everyone, read more.

Register now
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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.

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Frequently Asked Questions on the Stellar ITS

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.

Inheritance tax (IHT) is essentially a tax levied on any transfer of assets to other people or trusts. It is typically paid in respect of the value of a client’s estate on death, but it can also apply in respect of certain transfers of assets during their lifetime.

Read our guide as we explain what a client needs to pay and when, and some of the most important ways to gain relief from IHT.

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) – 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.

Take a look at our wide range of Inheritance Tax Services

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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.

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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

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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.