Corporate IHT Service
Green energy generating assets can be both an attractive investment and a sensible way for shareholders to lower their liability to Inheritance Tax (‘IHT’). Earnings are secure, predictable and largely inflation protected thanks to government backed energy subsidies. As a way to mitigate IHT, the underlying companies qualify for Business Relief (formerly known as Business Property Relief or BPR), so they can pass tax-free to your beneﬁciaries after two years.
In addition, if a business is holding surplus cash or other non-trading assets when shares are sold, this can lead to HM Revenue & Customs restricting the availability of Entrepreneur’s Relief and result in a costly capital gains charge. By deploying surplus cash from your business into qualifying trades may restore the availability of Entrepreneur’s Relief for shareholders.
This can result in an inheritance tax charge of 40% for the beneficiaries of the estate to meet.
Investing via the Deepbridge IHT Service could enable company shareholders to maintain the mitigation of inheritance tax upon death.
Companies must meet certain requirements in order to qualify for relief, so it is important to ensure that shareholdings and companies as a whole satisfy the legal requirements to be eligible for BR. If in any doubt, company directors should take independent advice.
The Deepbridge IHT Service
The Deepbridge IHT Service is a discretionary investment management service that invests in Business Relief qualifying asset-backed renewable energy opportunities that benefit from contractual revenues available under the Renewables Obligation. In doing so, the Service seeks to ensure an enduring focus upon capital preservation. A cost-efficient estate planning component of an investor’s portfolio, the Service can exempt a portion of the Investors estate from IHT, after a two-year holding period.
Maximum tax efficiency
To ensure maximum tax efficiency for the investor, the Deepbridge IHT Service is entirely investor-fee free, as fees are charged to the investee companies
Investors should be aware that investment in smaller unlisted companies (including Business Releif qualifying companies) carries with it a high degree of inherent risk whether or not it is done through a diversified portfolio and regardless of any tax advantages which such an investment might carry and/or any steps taken to attempt to mitigate that risk. Investors should be aware that thier capital is at risk and they may lose all or some of their investment. The stated target return is an indicative figure only and not guaranteed. Please refer to the Deepbridge IHT Service Corporate Investors Information Memorandum for further information regarding risks.
Information on this webpage relates to and is provided by Deepbridge Capital LLP.
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