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Octopus Inheritance Tax Service’s Rights Issue offer

open Open for new investment
Cheque payments must be received: 6 October 2023
Completed applications and cleared funds must be received: 12 October 2023

About the offer

The Octopus Inheritance Tax Service is a discretionary managed portfolio service. Through this Service Octopus has invested client money into one or more companies expected to qualify for Business Relief (BR).

One of the companies in the Octopus Inheritance Tax Service portfolio has offered shareholders the opportunity to purchase additional shares further to a Rights Issue. As the discretionary manager, we’re making investors aware of this opportunity, as a way for them to add to their portfolio.

The company has offered the nominee that holds shares on behalf of investors in the Service the opportunity to purchase three new shares for each existing share held on 3 July 2023.

If investors choose to add to their investment in the Service at this time, we intend to use their funds to take up the portfolio company’s Rights Issue. The new shares acquired using their investment will be Rights Issue shares.

Rights Issue shares will be issued on or around 18 October 2023 at the share price on that date.

Rights Issue shares will then form part of their portfolio alongside their existing investment in the Octopus Inheritance Tax Service with the same terms and conditions and subject to the same fees and charges.

How to apply

You should have received a link to a pre-populated online application for each of your eligible clients. If you haven’t received this please contact your BDM.

Key benefits

*If your client has held their existing investment for more than two years, they can benefit from immediate inheritance tax relief on their top-up investment. If your client hasn’t held their investment for more than two years, their top-up investment should still benefit from faster inheritance tax relief. For example, if they made their original investment one year ago, they’d only have to wait one year for their entire portfolio (existing and top up investment) to become free from inheritance tax.

Key risks

Please remember that the value of an investment in the Octopus Inheritance Tax Service could fall as well as rise, and you might not get back the full amount invested.

Fern, or any other company we choose to invest in within the Octopus Inheritance Tax Service, is an unquoted company not listed on any Stock Exchange, which means that shares can be difficult to sell.

Investments within Octopus Inheritance Tax Service are managed in such a way to qualify for Business Relief but qualification cannot be guaranteed. Tax treatment depends on individual circumstances, and tax rules could change in the future.

Tax relief depends on Fern continuing to qualify for Business Relief in the future, not just today.

Why is a portfolio company raising money in this way?

The Service invests in companies that target predictable growth over the long term. They are well-diversified businesses, scaling operations by adding incremental assets and businesses into established sectors. The current macro-economic environment provides particularly attractive opportunities to boost asset acquisition and further enhance diversification across the Service’s businesses.

Ed Fellows, the head of the Octopus Inheritance Tax Service, talks more about the opportunity in this short video.

Key resources

Octopus Inheritance Tax Service Rights Issue frequently asked questions and how to applyDownload
Octopus Inheritance Tax Service opportunity documentDownload
Octopus Inheritance Tax Service top-up suitability reportDownload
Octopus Inheritance Tax Service fees and charges calculatorLearn more
Octopus Inheritance Tax Service brochureDownload
Octopus Inheritance Tax Service Rights Issue summary document Download
Octopus Inheritance Tax Service Rights Issue client scenarioDownload

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