This non-bank lending sector also addresses the increasing demands to support SMEs. For example, Triple Point provided £285m of financing to UK-based organisations by March 2021 as it supported smaller businesses that were impacted by the pandemic. Managing a diverse debt financing book with c.£750m of AUM, Triple Point’s Estate Planning Service is an example of the options available for those seeking to mitigate IHT rises and receive reliable returns by prioritising diversification.
As a result, this solution can offer clients an estate planning tool which is both effective and targeting predictable returns. With an increasingly large number of clients being forced to alleviate the effects of rising IHT, prioritising a strategy of diversification will be crucial to mitigating risk and protecting clients’ long-term savings.
Don’t forget impact
Considering IHT bills having been steadily rising since 2009, the reason IHT relief has become a priority for many clients is clear. However, at the same time, investors have also become more and more interested in delivering impact. In fact, 42% of investors[8] were involved with impact investment last year.
Adopting a strategy which offers investors both vital IHT relief and the ability to generate impact is crucial. Leasing strategies can play a crucial role in driving financial and societal benefits through offering support to a broad range of groups which are fundamental to our economy. For example, Triple Point’s Estate Planning Services offers investors the ability to drive impact through the provision of lease and loan contracts that provide both the public sector and SMEs with vital support.
For example, in April 2020, Triple Point provided a regional country hospital with ventilators during the height of the pandemic’s first wave. Equally, Triple Point’s Estate Planning Services has supported tens of thousands of UK SMEs, a crucial element of our economy which has faced increasing pressures throughout the pandemic. This strategy offers investors reliable returns with 100% IHT relief from the amount invested after two years while also providing the ability to deliver impact.
As the economic climate remains uncertain with inflation continuing to rise, more and more people in the UK will be facing rising IHT bills. As a result, the number of clients seeking an effective estate planning solution is set to rise. This larger cohort of clients pursuing vital IHT relief will also be seeking a strategy which targets reliable returns, making diversification a key tool for advisors to utilise. However, with investor demands shifting, IHT relief is no longer enough. Adopting an estate planning solution that delivers both profit and purpose will be the key to meeting the demands of investors in the year ahead.
[1] https://www.bankofengland.co.uk/knowledgebank/will-inflation-in-the-uk-keep-rising#:~:text=We%20expect%20inflation%20to%20rise,the%20next%20couple%20of%20years.
[2] https://www.ftadviser.com/opinion/2021/05/24/iht-receipts-will-rise-further-after-nrb-freeze/
[3]https://www.ftadviser.com/your-industry/2022/03/23/tax-tricks-pulled-out-of-the-chancellor-s-hat/
[4]https://www.express.co.uk/finance/personalfinance/1587373/inheritance-tax-iht-threshold-allowance-uk-housing-market
[5] Ibid
[6] https://www.telegraph.co.uk/business/2022/03/25/rishi-sunak-set-rake-extra-22bn-inheritance-tax/
[7] https://www.ftadviser.com/opinion/2021/05/24/iht-receipts-will-rise-further-after-nrb-freeze/
[8]https://www.ftadviser.com/investments/2022/02/28/have-your-say-are-clients-interested-in-impact-investing/
