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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

Introducing the Service

Watch the video below for a short overview of the Service and its objectives.




Where we invest

Most investors in the Service hold shares in Fern Trading. Fern Trading is entirely owned by investors in the Octopus Inheritance Tax Service and is managed by Octopus.

Watch the video below to learn more about Fern’s underlying investments.

The Octopus Intergenerational Planning team

Learn how we can support you before and after a client dies, and help strengthen your intergenerational strategy.

Our guide to inheritance tax

Take a look at our guide to untangling inheritance tax, which explains common planning strategies in clear, easy-to-follow language.

Learn more about the Service

Introducing the Service

Watch the video below for a short overview of the Service and its objectives.




Where we invest

Most investors in the Service hold shares in Fern Trading. Fern Trading is entirely owned by investors in the Octopus Inheritance Tax Service and is managed by Octopus.

Watch the video below to learn more about Fern’s underlying investments.

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 brochureDownload
Details of underlying investmentsDownload
Octopus Inheritance Tax Service Quarterly FactsheetDownload
Octopus Inheritance Tax Service application formDownload
Octopus Inheritance Tax Service top-up formDownload
Octopus Inheritance Tax Service product overviewDownload
Octopus Inheritance Tax products terms and conditionsDownload

Key Documents

Octopus Inheritance Tax Service brochureDownload
Details of underlying investmentsDownload
Octopus Inheritance Tax Service application formDownload
Octopus Inheritance Tax Service terms and conditionsDownload
Octopus Inheritance Tax Service top-up formDownload
Octopus Inheritance Tax Service: an overviewDownload

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.

How to invest

If you’re ready to invest right away, download the application form via the button below.

Investment manager insights

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