Business Relief Investments
Investments that qualify for Business Relief provide relief from inheritance tax and can help investors pass on more to loved ones.
What is Business Relief?
Business Relief (BR) is an established relief from inheritance tax.
We’re the largest provider of investments that qualify for BR, so we’re well placed to help you understand them.
In fact, we’ve managed these investments since 2005 and we look after more than £3.9 billion across our range of BR products.
Watch our short video which explains:
- What Business Relief is
- Why invest
- An example scenario
Please read the risk information before making an investment decision.
Business Relief explained – Runtime 4:45
Business Relief with Octopus Investments
Business Relief (BR) is an established relief from inheritance tax.
We’re the largest provider of investments that qualify for BR, so we’re well placed to help you understand them.
In fact, we’ve managed these investments since 2005 and we look after more than £3.9 billion across our range of BR products.
Watch our short video which explains:
- What Business Relief is
- Why invest
- An example scenario
Please read the risk information before making an investment decision.
Reasons to invest
Access and control
Investments stay in the shareholder’s name, meaning they retain access to their wealth and can sell their shares later on if they need to.
Fast inheritance tax exemption
BR-qualifying investments can be free from inheritance tax after just two years, which is significantly faster than options such as gifting.
Opportunity for investment growth
BR-qualifying investments give investors the opportunity to grow their capital, with a range of products available to suit different appetites.
Supporting UK businesses
BR-qualifying investments provide long-term capital to UK businesses which create jobs and stimulate the economy.
Reasons to invest
Access and control
Investments stay in the shareholder’s name, meaning they retain access to their wealth and can sell their shares later on if they need to.
Fast inheritance tax exemption
BR-qualifying investments can be free from inheritance tax after just two years, which is significantly faster than options such as gifting.
Opportunity for investment growth
BR-qualifying investments give investors the opportunity to grow their capital, with a range of products available to suit different appetites.
Supporting UK businesses
BR-qualifying investments provide long-term capital to UK businesses which create jobs and stimulate the economy.
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.
Tax relief can’t be guaranteed
Tax relief depends on the companies invested in maintaining their BR-qualifying status. Tax treatment depends on individual circumstances and tax rules could change in the future.
Volatility and liquidity
The shares of AIM-listed and unlisted 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.
Assessed case-by-case
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.
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.
Tax relief can’t be guaranteed
Tax relief depends on the companies invested in maintaining their BR-qualifying status. Tax treatment depends on individual circumstances and tax rules could change in the future.
Volatility and liquidity
The shares of AIM-listed and unlisted 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.
Assessed case-by-case
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.
Estate planning now and moving forward
Visit our inheritance tax post-Budget webpage
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.
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.
Resources and guides
Untangling inheritance tax guide
Inheritance tax can be a complicated topic, but this guide will help you understand how it could affect you and take you through your options.
Resources and guides
Inheritance tax tool kit
You can educate and nurture clients with these resources when having conversations about estate planning.
Have a client in mind?
Want to understand how a BR-qualifying investment could benefit your clients? Browse our client scenarios.
Estate planning for clients who want to retain access to capital
Some clients are reluctant to move forward with their estate planning because they feel uncomfortable giving away assets, even if they can afford to do so.
Estate planning for clients who’ve sold a business in the last three years
While a family business can be passed on to beneficiaries free of inheritance tax, if a client sells their business they lose that exemption.
Clients who want an inheritance tax-efficient ISA
This planning scenario explains how a suitable client can use their ISA to plan for inheritance tax, without losing ISA tax benefits or control over their assets.
Estate planning with a power of attorney in place
Estate planning options can be limited where a power of attorney is in place. Investments that qualify for BR are a potential solution for donors who have expressed wishes to plan for their estate.
Estate planning for clients who want to settle assets into trust
A lifetime transfer of assets into a discretionary trust is a ‘chargeable lifetime transfer’. BR offers a way for clients to reduce or eliminate this charge, if they settle qualifying shares into trust.
Estate planning for clients who worry it’s too late
It’s common for older clients to feel they’ve left it too late to plan for inheritance tax. BR-qualifying investments can be free from inheritance tax in just two years.
The Knowledge Base – deep dive with Octopus on estate planning
A comprehensive technical bank of whitepapers for advisers and paraplanners.
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We’re here to support you
If you’ve got a question about any of our products or services, please get in touch.
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Out of office hours? Email us and we’ll do our best to contact you within 24 hours.
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