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Introducing the Octopus Inheritance Tax Service

The Octopus Inheritance Tax Service gives your clients the opportunity to invest in the shares of one or more unlisted UK companies that are having a positive impact on the growth of the UK economy. We select companies that we expect to qualify for Business Property Relief (BPR). This is a government-approved relief from inheritance tax. Provided the investment has been held for at least two years at the time of your client’s death, it can be left to their beneficiaries free of inheritance tax. The service has the aim of preserving capital and delivering a consistent, but modest, level of return.

You should keep in mind that tax rules may change in the future, and the value of tax reliefs depends on individual circumstances. You should also know that tax reliefs depend on portfolio companies maintaining their qualifying status. The value of an investment may go down as well as up and investors may not get back what they originally put in.

Make sure you look at the ‘What are the risks?’ section below and please read the product brochure for full details of fees, charges and risks.

Reasons to consider the Octopus Inheritance Tax Service

Traditional estate planning solutions can take seven years before they become exempt from inheritance tax. However, an investment in this service can become 100% inheritance tax exempt after just two years.

Investors can ask us to sell shares at any time. They can even set up regular withdrawals if they need to. We aim to ensure that investors can sell their investment quickly if required, and on average, most receive the proceeds within ten days.

Capital preservation target
The companies the service invests in carry out a range of different trades, but they all target capital preservation and a 3% return per annum over the holding period.

Growth Shield
To help ensure that our interests are aligned with those of our investors, we’ll only take our annual management charge after the investor or their beneficiaries ask us to sell shares. And we won’t take our full annual management charge if the growth target isn’t met.

What are the risks?

Investors may lose money
The Octopus Inheritance Tax Service invests in trading companies that are not listed on a stock exchange. On a day-to-day basis, the value of these companies can fall or rise more sharply than shares in larger companies listed on the main market of the London Stock Exchange. Your client may not get back the full amount they invest. Even with our ‘Growth Shield’, there’s no guarantee that the target return will be achieved, and your client could lose money.

Tax relief cannot be guaranteed
The service is based on current tax legislation, which could change in the future. The availability of tax reliefs also depends on the companies we invest in maintaining their qualifying status. The value of any tax reliefs depends on individual circumstances.

The investment may be difficult to sell
The shares we invest in are not listed on a stock exchange and may take longer to sell than the shares of companies listed on the main market of the London Stock Exchange. The timing of share sales, and when we can return the proceeds to your client, cannot be guaranteed.

BPR is assessed on a case-by-case basis
We cannot guarantee that the investments we make will qualify for BPR in every case in the future. HMRC will only conduct a BPR assessment after the death of an investor, to confirm whether the companies invested in qualify for BPR at that time.

Related Documents

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Octopus Inheritance Tax Service brochure

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Octopus Inheritance Tax Service application form

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Octopus Inheritance Tax products terms and conditions

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For some helpful ideas about the type of clients that might be interested in the Octopus Inheritance Tax Service, here are ten clients to talk to about estate planning.

Doing good with investors’ money

Our flagship estate planning service helps investors plan for the future, but they also know their money is being put to good use right now. We invest in companies that address the needs of older people, by building retirement villages, care homes and hospitals. We also invest in renewable energy facilities that are changing the shape of the UK energy market.

Watch these short videos to see for yourself the good things we’re doing with investors’ money.

How to invest

The minimum investment amount is £25,000. Your client can invest a one-off amount via bank transfer, cheque or banker’s draft.

Create client illustration Apply online

Alternatively, you can download the application form above.

Please read

Nothing on this page constitutes investment, tax or legal advice. This product is not suitable for everyone, so we recommend investors speak to a financial adviser, and read the product brochure, which is available on this page, before deciding whether to invest.