IHT Business Property Relief Schemes
Avoid IHT using Business Property Relief Schemes
When an investment qualifies for Business Property Relief, the asset falls outside the Estate for the purposes of IHT after just two years.
This kind of arrangement could be particularly beneficial for those with an IHT liability on death whose age or health may preculde IHT planning using traditional IHT gifting strategies such as Potentially Exempt Transfer should there not be a realistic expectation of survival for seven years.
Investment into a qualifying Business Property Relief plans provide the following IHT benefits:
- 100% inheritance tax free for BPR qualifying investments held in excess of than two years
- Unlike gifting strategies involving Potentially Exempt Transfers, control of capital is retained and no requirement to survive seven years to avoid IHT
IHT Business Property Relief Schemes - Who are the providers?
IHT Business Property Relief Schemes are available from a number of specialist investment houses in the UK.
IHT Business Property Relief Schemes - How risky is this type of investment?
Unlike the Enterprise Investment Schemes, IHT Business Property Relief Schemes can be found with a far lower risk profile. There are some schemes available that offer the investor a "Conservative" investment strategy where the primary objective of the investment is that of capital preservation.
For investors seeking higher levels of risk, in common with other investments, higher risk rated funds are available, but since one of the key benefits for this kind of scheme is the 100% relief from IHT after two years, investment funds bearing lower risk are inherently more popular with investors.
Who are IHT Business Property Relief Schemes suitable for?
IHT Business Property Relief Schemes are suited to the following individuals with some or all of the following requirements:
- Desire to avoid IHT on an investment after two years
- Lower risk investment offering Business Property Relief
- Do not want to lose access to their capital
- May not have a realistic expectation of surviving seven years
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