Octopus Inheritance
Tax Service
Helping investors pass on more of their wealth free from inheritance tax
Octopus Inheritance Tax Service
Helping investors pass on more of their wealth free from inheritance tax
The Octopus Inheritance Tax Service gives investors the opportunity to invest in the shares of one or more unquoted UK companies that are having a positive impact on the growth of the UK economy. The Service targets a steady, predictable, but modest level of return.
We select companies that we expect to qualify for Business Relief (BR), a government-approved relief from inheritance tax. Provided the investment has been held for at least two years at the time of death, it can be left to their beneficiaries free of inheritance tax.
Reasons to invest
Two-year qualifying period
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
Investors can ask us to sell shares at any time. We aim to ensure that investors can sell their investment quickly if required, and on average, most receive the proceeds within ten days, although access cannot be guaranteed.
Target a steady return
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.
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.
Learn more about the Service
Learn more about the Service
Try our inheritance tax calculator
Check the potential inheritance tax due on an estate, including the potential impact of the residence nil-rate band.
Years of the Octopus Inheritance Tax Service
0% initial fee* until 10 September 2024
How to apply
To say thank you to all our advisers and investors as we hit 16 years of the Service, we’re offering a promotion – 0% initial fee* until 10 September 2024.
We call this achievement a “double Octopus”. Over this time more than 10,000 advisers have helped almost 25,000 customers pass on more wealth to their loved ones.
*this offer is for advised investors only.
Fees and charges
| Octopus initial charge: | 2% (0% until 10 September 2024) |
| Adviser initial charge: | Agreed with investor |
| Annual management charge (deferred until shares are sold, except for trusts which are paid annually): | Up to 1%+VAT per annum |
| Ongoing adviser fee (paid quarterly, except for trusts which are paid annually): | Agreed with investor |
| Dealing fee (for investments and withdrawals): | 1% |
For a detailed overview of all charges please view the product brochure.
Fees and charges
Please consult the product brochure for a full overview of all fees and charges.
Key documents
| Octopus Inheritance Tax Service brochure | Download |
| Details of underlying investments | Download |
| Octopus Inheritance Tax Service Quarterly Factsheet | Download |
| Octopus Inheritance Tax Service application form | Download |
| Octopus Inheritance Tax Service top-up form | Download |
| Octopus Inheritance Tax Service product overview | Download |
| Octopus Inheritance Tax products terms and conditions | Download |
Key Documents
| Octopus Inheritance Tax Service brochure | Download |
| Details of underlying investments | Download |
| Octopus Inheritance Tax Service application form | Download |
| Octopus Inheritance Tax Service terms and conditions | Download |
| Octopus Inheritance Tax Service top-up form | Download |
| Octopus Inheritance Tax Service: an overview | Download |
Ways to invest
Choose how to invest based on the type of investment.
New investment
Complete an online application to start a new investment.
Power of attorney investment
If there’s a registered Power of Attorney in place, download the application form to make an investment. You’ll also need to complete our Registering a Power of Attorney pack.
Joint investment
Download an application form to make a joint investment.
Top up
Download a top up form to top up an existing investment.
How to invest
If you’re ready to invest right away, download the application form via the button below.
Investment manager insights
The outlook for Fern Trading Limited
Fern’s approach to renewable energy
Fern’s approach to property lending
The investment process and the people who manage it
The investment strategy of the Octopus Inheritance Tax Service
Related webinars
For Advisers: Getting Estate Planning Right
Duration: 1hour 2mins
For Investors: Getting Estate Planning Right
Duration: 1hour 2mins
Writing Business Relief cases
Duration: 1hour
Identifying clients who could benefit from Business Relief
Duration: 37mins
Introduction to inheritance tax
Duration: 54mins