OITSPlus
Achieve faster IHT mitigation with our 2-year insurance cover
OITSPlus
Achieve faster IHT mitigation with our 2-year insurance cover
OITSPlus invests in the same companies as the Octopus Inheritance Tax Service, targeting a steady, predictable, but modest level of return. Crucially, these are unquoted UK companies that we expect to qualify for Business Relief (BR), a longstanding relief from inheritance tax.
In addition, OITSPlus includes our two-year insurance cover for eligible advised investors. If an investor dies within the two-year qualifying period required to achieve relief from inheritance tax (IHT), our insurance will cover 40% of their initial investment to mitigate any inheritance tax liability.
Reasons to invest
Flagship investment
OITSPlus gives you access to the same companies as the Octopus Inheritance Tax Service. These companies carry out a range of different trades, targeting a net 3% return per annum over the long term.
Efficient IHT planning
If you die within the two-year qualifying period required to achieve relief from IHT, provided your death is eligible, our insurance will cover 40% of your initial investment, to help mitigate any IHT liability.
Growth Shield
We only take our annual management charge when an investor or their beneficiaries ask to sell shares. And we won’t take our full annual management charge if the growth target isn’t met.
Access
OITSPlus is flexible should your circumstances change. You can add to your investment or choose to sell your whole portfolio at any time if you need to. After two years, you can request a partial withdrawal.
Frequently asked questions
You need to take financial advice prior to deciding to invest. A financial adviser will be able to help you decide whether this investment is suitable for you, and they can also help you to complete your application.
Who is eligible for OITSPlus?
To qualify for OITSPlus, investors must be under 75 at the time of share allotment and complete a health declaration, which is part of the application form. Cover will start on the date shares are purchased. This product is for advised clients only.
What is the health declaration?
There is no requirement for a medical examination or complicated questionnaires. Instead, investors need to complete a straightforward health declaration. It asks investors to confirm that in the last five years, they have not been diagnosed with or received active treatment for:
- Cancer
- Heart disease
- Stroke
- Dementia and/or Alzheimer’s
- Chronic lung condition
Additionally, investors must confirm that they have not been diagnosed with a terminal illness.
What does our insurance cover?
Our insurance covers an ‘eligible’ death within the two-year period from share allotment. During the first six months, only accidental deaths are covered. Our insurance will cover 40% of the initial gross investment, up to a maximum settlement of £100,000.
What happens after two years?
When the insurance cover ends for OITSPlus, the portfolio will remain invested in the BR-qualifying companies, allowing it to be left to beneficiaries with relief from IHT.
Frequently asked questions
Who is eligible for OITSPlus?
To qualify for OITSPlus, investors must be under 75 at the time of share allotment and complete a health declaration, which is part of the application form. Cover will start on the date shares are purchased. This product is for advised clients only.
What is the health declaration?
There is no requirement for a medical examination or complicated questionnaires. Instead, investors need to complete a straightforward health declaration. It asks investors to confirm that in the last five years, they have not been diagnosed with or received active treatment for:
- Cancer
- Heart disease
- Stroke
- Dementia and/or Alzheimer’s
- Chronic lung condition
Additionally, investors must confirm that they have not been diagnosed with a terminal illness.
What does our insurance cover?
Our insurance covers an ‘eligible’ death within the two-year period from share allotment. During the first six months, only accidental deaths are covered. Our insurance will cover 40% of the initial gross investment, up to a maximum settlement of £100,000.
What happens after two years?
When the insurance cover ends for OITSPlus, the portfolio will remain invested in the BR-qualifying companies, allowing it to be left to beneficiaries with relief from IHT.
Risks to bear in mind
Capital at risk
The value of an investment, and any income from it, can fall as well as rise and investors may not get back the full amount they put in. Even with our ‘Growth Shield’, there’s no guarantee that the target return will be achieved, and investors could lose money.
Tax treatment may change
The Service is based on current tax legislation which could change in the future. Tax relief depends on the companies we invest in maintaining BR-qualifying status. Tax treatment depends on individual circumstances and may change in the future.
The investment may be volatile and difficult to sell
The shares of unquoted companies could fall or rise in value more than shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
BR is assessed on a case-by-case basis
We cannot guarantee that the investments we make will qualify for BR in every case in the future. HMRC will only conduct a BR assessment after the death of an investor, to confirm whether the companies invested in qualify for BR at that time.
Insurance cover
Our insurance cover only applies to eligible deaths. Ineligible deaths, or a misrepresentation in the health declaration could result in the insurer refusing to settle a claim under the insurance policy.
