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Introducing the Octopus Inheritance Tax Service

The Octopus Inheritance Tax Service gives you 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 death, it can be left to your beneficiaries free of inheritance tax. The service has the aim of preserving capital and delivering a consistent, but modest, level of return.

The Octopus Inheritance Tax Service Octopus is only available through a financial adviser. You can find an adviser in your area here.

You should keep in mind that the value of an investment may go down as well as up and you may not get back what you originally put in. Tax rules may change in the future, and the value of tax reliefs depends on your own personal circumstances. You should also know that tax reliefs depend on portfolio companies maintaining their qualifying status. Please remember, we cannot offer any guarantees about the growth you will achieve.

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

Read the brochure  Essentials of the Octopus Inheritance Tax Service.

Watch our short videos  All the good things we’re doing with investors’ money.

Reasons to consider the Octopus Inheritance Tax Service

More of your wealth can be passed on to your family
The Octopus Inheritance Tax Service invests in companies that are expected to qualify for relief from inheritance tax. It can be an effective way to reduce or potentially even eliminate an inheritance tax bill that your family may otherwise have to pay on your estate.

Speed
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.

Access
You can ask us to sell shares at any time. You can even set up regular withdrawals if you need to. We aim to ensure 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 an annual return of 3% on the value of the shares, compounded over the lifetime of the investment.

Growth Shield
To help ensure that our interests are aligned with our investors, we’ll only take our annual management charge after you or your 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?

You 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. You may not get back the full amount you invest. Even with our ‘Growth Shield’, there’s no guarantee that the target return will be achieved, and you 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 will depend on your personal 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 you, 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 product overview

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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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Octopus Inheritance Tax Service underlying investments

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This product is not suitable for everyone and it’s important that you fully understand the risks involved. We do not offer investment or tax advice.