Foresight Accelerated Inheritance Tax Solution Scenario: New investors in BPR

By Hugi Clarke, Sales Director, Foresight

A retail investment client, Mrs Gerard, has £200,000 that she wishes to invest to reduce an £80,000 Inheritance Tax ("IHT”) liability, and is willing to consider investing in Business Property Relief ("BPR”). Traditional BPR products offer a myriad of benefits and are growing in popularity, yet it takes two years from the date shares are allocated for the investment to become exempt from inheritance tax. This means that beneficiaries are typically faced with a 40% IHT liability if the investor dies before the end of the first two years.

Foresight has developed a solution to put the minds of investors at ease in those first two years. Foresight’s Accelerated ITS offers Mrs Gerard an alternative to typical BPR products as it mitigates IHT from the day that shares are allocated by virtue of an innovative, insurance based solution.

If Mrs Gerard was invested in Foresight AITS and died during the first two years of her investment, her beneficiaries would still be protected from the impact of IHT. The group insurance policy that mitigates IHT tax liability in the Foresight AITS is designed to cover investors in the case of death to the value of their 40% Inheritance Tax liability, and is available without any medical underwriting.

Foresight’s AITS allows beneficiaries to avoid a potentially unpleasant decision of having to liquidate assets or part with sentimental items in order to cover an unexpected IHT bill, and our aim is to give investors peace of mind from the moment they choose to invest.

This communication has been issued and approved as a financial promotion for the purpose of Section 21 of the Financial Services and Markets Act 2000 by Foresight Group LLP, which is authorised and regulated by the Financial Conduct Authority (FRN: 198020). Your money will be invested in unlisted companies which places your capital is at risk and you may lose all the money you invest. Prospective investors should seek independent professional advice before deciding to invest. Tax treatment depends on the individual circumstances of the investor and may be subject to change in the future.