INVESTING Individual Investor Financial Adviser Institutional Investor FUNDING Entrepreneur Real Estate


Your client’s key objectives were:

  • Investment objective: Moderate growth
  • Tax objective: Income tax planning

The results:

Unfortunately, there isn’t one solution that could meet both your client’s key tax and investment objectives. 

However, we’ve highlighted some options to consider that meet your client’s tax and investment objectives when taken in isolation. You may wish to research these opportunities and consider whether using a combination of these could support your client’s financial planning. 

Investment and tax objectiveInvestment objectiveTax objective
No solutionBusiness Relief (unquoted)Enterprise Investment Scheme or Venture Capital Trusts

Tax-efficient investments

What is Business Relief?

Business Relief (BR) is an established relief that allows certain investments to be left to loved ones free from inheritance tax. Compared to options like gifting, it can offer a faster solution to inheritance tax and doesn’t put capital permanently out of reach.

What are the reasons to invest?

Fast inheritance tax exemption

BR-qualifying investments can be free from inheritance tax after just two years.

Access and control

Investors retain access to their wealth and can request to sell their shares at any time, subject to liquidity.


BR-qualifying investments give investors the opportunity to grow their capital, with a range of products available to suit different appetites.

Points to consider

An inheritance tax service that invests in unquoted Business Relief-qualifying companies selects businesses that are not listed on any stock exchange. These typically target a steady, predictable return.

AIM inheritance tax services invest in Business Relief-qualifying companies that are listed on the Alternative Investment Market (AIM) market. They offer the potential for high growth.

Risks to bear in mind

Capital at risk

The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.

Volatility and liquidity

VCT, smaller and unquoted company shares could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.

Qualification status

Tax reliefs depend on VCTs maintaining their qualifying status or portfolio companies maintaining their BR- or EIS-qualifying status.

Tax treatment

Tax treatment depends on individual circumstances and could change in the future.

Business Relief-qualifying investments from Octopus

Octopus Inheritance Tax Service

A service targeting a steady, predictable return. It has been helping investors pass on more of their wealth since 2007.

Octopus AIM Inheritance Tax Service

Helping investors pass on more of their wealth, while targeting growth by investing in companies listed on the Alternative Investment Market (AIM).

Octopus AIM Inheritance Tax ISA

Investors with large ISA pots can plan for inheritance tax while keeping their wealth in an ISA wrapper.

Enterprise Investment Schemes from Octopus

VCTs from Octopus

We’re here to support you

If you’ve got a question about any of our products or services, please get in touch.

Get in touch

Out of office hours? Use our form and we’ll do our best to contact you within 24 hours.

Call us

Use our postcode search to find the contact details of the people who look after your firm.

Please read: We do not offer investment or tax advice, and we always recommend investors talk to a financial adviser before making investment decisions. This advertisement is not a prospectus. Investors should only subscribe for shares on the basis of information contained in the prospectus and Key Information Documents (KID), which are available in the document section of this page.