X

About

Advertise

Contact

Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Search
Close

About

Advertise

Contact

Jobs

Tools for Advisers

Untitled-1
Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Untitled-1
Linkedin
Twitter
Facebook-f

It’s time to talk about business relief with Downing

by Andrew Sullivan
October 31, 2019
in GBI, Sponsored
Share this story
It’s time to talk about business relief with Downing
Share this story

People all over the country are leaving their loved ones with much bigger inheritance tax (IHT) bills than they need to. IHT receipts reached £5.4 billion in the 2018/19 tax year – their highest ever level.


With house prices increasing in recent years, it’s no longer just the wealthy who need to worry about IHT, so Downing have put together the below guide to help advisers and clients get to grips with business relief (BR).

Business relief – simple, speedy, flexible

BR is a tax exemption originally set up to allow families to pass their own businesses down through generations, without incurring crippling IHT bills. But now financial products allow individuals to invest in businesses that qualify for BR. This means the value of these investments will not be subject to IHT when the investor dies, if the shares have been held for a minimum of two years at the date of death. Learn more about IHT here.

Five benefits of business relief

  1. Speed: BR-qualifying investments are exempt from IHT after only two years (as long as shares are held at death).
  2. Access and control: BR services offer your clients monthly access to capital, with no penalties or charges on exit. Your clients can invest across three distinct sectors: asset-backed businesses, renewable energy and companies quoted on the alternative investment market (AIM).
  3. Income: BR investments can provide your clients with regular distributions or income.
  4. Simplicity: Trusts and gifts can be complex legal structures and may require medical underwriting. Compared to this, BR investments are relatively straightforward. Also, those who have set up a lasting power of attorney can make BR-qualifying investments without permission from the Court of Protection.
  5. Downside Protection Cover: Included as standard if you’re under the age of 90, this policy protects your initial net investment of a loss in value of up to 20% (conditions apply).

Intergenerational estate planning

Downing believes that financial planning on an intergenerational basis is increasingly important as it’s now not uncommon for four generations of the same family to be alive at the same time.

Today’s older generation are often considered the ‘lucky ones’, with many owning their own homes and benefitting from generous final salary pensions. Meanwhile, younger family members can be saddled with student debt, have less opportunity to get on the housing ladder, and face an uncertain economic future.

This means that, for many families, being able to pass their wealth on to the next generation is crucial – and that’s where BR investments can help.

It’s important to note that capital is at risk and returns aren’t guaranteed. tax treatment depends on the individual circumstances of each investor and may be subject to change. The availability of tax reliefs depends on investee companies maintaining their qualifying status.


Find out more about Downing here

Tags: business reliefdowninginheritance taxintergenerational estate planning
Previous Post

Investing in today’s themes, tomorrow’s sectors

Previous Post

Gunner & Co. recruit new Senior Broker to bolster growing team

Previous Post

Retirees going for increasingly stable pension income withdrawals

Next Post

Can history help guide investors during this period of rapid technological change?

Next Post

Plan Now to Prevent Later Life Becoming an Issue

Next Post

Latest Rates, The (non) Budget, HMRC and Commercial Realities

Related Posts

EIS – looking to the future
Featured

EIS – looking to the future

January 21, 2021
Extending carry back – what is your view?
News

Extending carry back – what is your view?

January 11, 2021
Blackfinch Ventures: In the spotlight
Interviews

Blackfinch Ventures: In the spotlight

January 7, 2021
Making a positive difference at the cutting edge
Interviews

Making a positive difference at the cutting edge

January 7, 2021
Extending carry back – what is your view?
News

Extending carry back – what is your view?

January 6, 2021
The first Knowledge Intensive Fund approved by HMRC
News

The first Knowledge Intensive Fund approved by HMRC

December 21, 2020
Next Post
Can history help guide investors during this period of rapid technological change?

Can history help guide investors during this period of rapid technological change?

Plan Now to Prevent Later Life Becoming an Issue

Plan Now to Prevent Later Life Becoming an Issue

Latest Rates, The (non) Budget, HMRC and Commercial Realities

Latest Rates, The (non) Budget, HMRC and Commercial Realities

Podcasts & Films

  • Put an atomic clock in your car, phone and on your wrist
    January 13, 2021
  • The Nexus Scale-Up Fund walk through
    December 21, 2020
  • Net4 x ARIE Capital webinar, hosted by CoInvestor
    December 18, 2020
  • How does Nexus Communicate with clients?
    December 18, 2020
  • Nexus Investments – Reasons for Advisers to be positive in 2021
    December 17, 2020
  • The Nexus Story
    December 16, 2020

Today’s Most Read

  • TikTok Investors give financial advice, the industry reacts
    January 18, 2021

    @peter_IFAMAG reads Twitter so you don’t have to. Retail investing exploded in 2020, but along with that has come the proliferation of shoddy advice. Today

  • Columbia Threadneedle appoints Michaela Collet Jackson as head of distribution
    January 21, 2021

    Columbia Threadneedle Investments, a leading global asset management group, announces the appointment of Michaela Collet Jackson as Head of Distribution EMEA. In this role, Michaela

  • Asset Intelligence launches two investment funds in partnership with T. Rowe Price
    January 19, 2021

      Asset Intelligence Portfolio Management (AIPM), the Midlands based discretionary fund manager, today announces the launch of two new investment funds: The VT Asset Intelligence

  • Advisers turn to UK equities in Q4 – Square Mile MI report
    January 18, 2021

    The quarterly Market Intelligence Report released today by Square Mile Investment Consulting and Research (Square Mile) suggests a renewed adviser interest in UK equities in

  • Inauguration Day 2021 – What is the outlook for US Equities and markets?
    January 18, 2021

      On Tuesday January 20th at noon eastern, as prescribed by the Constitution of the United States, Joseph Robinette Biden Jr, having been certified as

  • EIS – looking to the future
    January 21, 2021

    EIS has been part of an adviser’s tax efficient tool kit for the last 26 years and now, more than £2 billion is invested annually

  • Financial services and forced labour in the UK
    January 18, 2021

    A groundbreaking report into the UK’s financial sector has found worryingly low levels of awareness of forced labour and exploitation of workers. The study, led

  • Nucleus launches low-cost outcomes-based managed portfolio service 
    January 21, 2021

    Nucleus, the adviser built wrap platform, has launched a fully integrated, low-cost, outcomes-based managed portfolio service which has been designed to align client goals directly with their investments. 

  • Artemis strengthens its distribution team
    January 18, 2021

    Artemis Investment Management LLP has announced that in March 2021 Iain MacPherson will be joining their distribution team in London as a sales director, reporting

  • Defaqto launches market-leading Income Drawdown tool 
    January 20, 2021

    Defaqto, the independent financial information and technology business has launched its hotly anticipated Income Drawdown workflow within its financial planning software, Defaqto Engage. Defaqto’s unique

More Articles

Blackfinch Ventures: In the spotlight
Interviews

Blackfinch Ventures: In the spotlight

January 7, 2021
Making a positive difference at the cutting edge
Interviews

Making a positive difference at the cutting edge

January 7, 2021
Meet the manager of the M&G Global Listed Infrastructure Fund
Interviews

Meet the manager of the M&G Global Listed Infrastructure Fund

December 15, 2020
Par Equity is the bright EIS star of the North 
Interviews

Par Equity is the bright EIS star of the North 

November 23, 2020
What’s next for Mercia?
Interviews

What’s next for Mercia?

November 2, 2020
M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell
Interviews

M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell

October 21, 2020
People Behind the Product: Pippa Gawley, Zero Carbon Capital
GBI

People Behind the Product: Pippa Gawley, Zero Carbon Capital

October 7, 2020
People Behind the Product: Matthew Steiner, Stellar Asset Management
GBI

People Behind the Product: Matthew Steiner, Stellar Asset Management

October 6, 2020
People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners
GBI

People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners

October 5, 2020

About Us

​IFA Magazine – for today’s discerning financial and investment professional.

Published ten times a year, IFA Magazine has been winning a keen and enthusiastic following among Britain’s premier financial advisers, planners and paraplanners.

Newsletter

    Follow Us

    Linkedin
    Twitter
    Facebook-f

    © 2021 All rights reserved​ to IFA Magazine | Website by: Nivo Digital | Terms and Conditions

    Do NOT follow this link or you will be banned from the site!

    Adblock Blocker

    We have detected that you are using

    adblocking plugin in your browser. 

    Keep updated on the most important financial events 

    Make sure you are an informed

    wealth professional..

    IFA Magazine
    • News
      • In the Press
      • Politics and Finance
    • Featured
      • Podcasts & Films
      • Interviews
      • Events
      • Finance on Social Media
      • Jobs
      • MPS Report
    • GBI
      • Tax Efficient Investments
      • Open Investment Opportunities
      • People Behind the Product
      • GBI Magazine Issues
      • About GBI
    • Business
      • Regulation and Compliance
    • Magazines
    • The M&G Adviser Hub