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Three quarters of IFAs believe Business Relief investments will increase, according to new survey


Three quarters (76 per cent) of IFAs believe that their use of Business Relief propositions will increase over the next two years, with less than 2 per cent saying they saw their use of the tax break decreasing. This is according to new research by Deepbridge Capital, the tax efficient investment manager, where inheritance tax (IHT) planning was the number one consideration for four in five (80 per cent) respondents.

According to The Openwork Partnership, one of the UK’s largest networks of financial advisers, there was a 38 per cent spike in demand for advice on IHT planning in the past year, with more than one in ten clients wanting to discuss it. This demand for IHT tax planning is set to increase significantly with latest data from HMRC showing IHT receipts for April 2021 to May 2021 were GBP966 million, GBP340 million higher than in the same period a year earlier.

According to Deepbridge’s research, Business Relief is already considered for most or every client by 78 per cent of advisers, the second most commonly utilised IHT planning tool after gifting (94 per cent) and ahead of trusts (73 per cent) and life policies (67 per cent).
The research revealed that when using Business Relief, less than one in six (16 per cent) of those surveyed preferred AIM stocks, with 31 per cent preferring non-AIM and 54 per cent having no preference.

The Deepbridge Estate Planning Service specialises in investing in trading companies whose objectives are based on building, acquiring and operating a range of renewable energy generating installations, as a trading activity with a view to generating long term capital growth. During the past twelve months, the Deepbridge Estate Planning Service produced capital growth of 6.8 per cent, based on the actual share price change achievd by the underlying trading companies.

Andrew Aldridge, Partner and head of marketing, says: “The results of this survey support our strategy of providing a service dedicated to offering Business Relief qualifying investments to IFAs and their clients. We believe our significant experience of constructing and managing renewable energy assets provides an appealing investment opportunity for investors not only seeking IHT mitigation but who are also keen to support the green energy revolution.

“For individuals and couples to generate a potentially large inheritance tax bill when they die, they may not necessarily need to be what they perceive as being ‘wealthy’. However, with some careful planning, it is possible to pass on more of their wealth to their family.  By holding Business Relief qualifying assets, this could potentially be achieved after just 2 years, and enable investors to maintain ownership of their assets during their lifetime. The Deepbridge Estate Planning Service can provide suitable clients with access to a portfolio of Business Relief qualifying renewable energy assets.”

The Deepbridge Estate Planning Service is an opportunity which intends for subscribers to obtain relief from IHT after only two years, by deploying into companies that should qualify for Business Relief that operate, and trade in, renewable energy generation assets. The service is specifically designed for individuals whose estate is expected to be valued significantly in excess of the Nil Rate Band for Inheritance Tax, currently GBP325,000.

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