Who is it for?

Clients with a main residence valued in excess of £500,000 wishing to minimise the family’s future IHT liabilities.

What does it do?

Reduces Client IHT liability whilst allowing them to remain in their primary residence.

How does it work?

This simple plan relies on the favourable Inheritance Tax Treatment afforded to certain securities. Specifically a portfolio of AIM listed stocks affords the client with both accelerate taper relief and exemption from Inheritance tax on the funds invested. 

1. IFA arranges equity release against client's property. We have made arrangements with a suitable offshore lender and can make an introduction if required.

2. Proceeds are invested in a qualifying IHT efficient portfolio.

3. Lending is secured against both the investment portfolio and the property.

In conjunction with its banking and investment partners Tax4ifas.com has a developed a turn-key plan which is available to IFAs and their clients.

Costs

Costs are dependent upon the lending rate and the portfolio management charges. Contact us for current rates.

The result.

After 2 years the sum invested within the IHT portfolio is excluded property for IHT purposes.

Risks.

Tax Risk -           Very low.

Investment risk - Medium / High