Since 2007, the Octopus Inheritance Tax Service has allowed investors to invest in the shares of companies which have positively contributed to the UK’s economic growth.
The companies are unquoted, meaning their shares do not trade on any stock exchange. Octopus selects companies that they expect to qualify for Business Property Relief, a government-approved incentive, currently offering 100% relief from inheritance tax. The investment can be left to the beneficiaries without inheritance tax, provided it has been held for at least two years at the time of death.
The Octopus Inheritance Tax Service has a host of benefits for investors. Firstly, the two-year qualifying period allows for an eventual inheritance tax exemption. Investors can ask to sell their shares at any time, with Octopus aiming to ensure that investors can sell quickly if required, although this obviously cannot be guaranteed.
The companies in which the service invests target capital preservation and a 3% return per annum over the holding period. Octopus only take their annual management charge after the investor or their beneficiaries ask them to sell the shares, and Octopus won’t take their full annual management charge if the growth targets aren’t met.
Click here to find out more about the Octopus Inheritance Tax Service.
