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OITSPlus
Achieve faster IHT relief with our 2-year insurance cover
OITSPlus
Achieve faster IHT relief with our 2-year insurance cover
Investing with Business Relief Insurance
OITSPlus invests in the same companies as the Octopus Inheritance Tax Service, targeting a steady, but modest level of return. Crucially, these are unquoted UK companies that we expect to qualify for Business Relief (BR), a longstanding relief from inheritance tax.
In addition, OITSPlus includes our insurance cover for eligible advised investors. If an investor dies within the two-year qualifying period required to achieve relief from inheritance tax (IHT), our insurance will cover 40% of their initial investment to help pay any inheritance tax liability.
Reasons to invest
Flagship investment
OITSPlus gives you access to the same companies as the Octopus Inheritance Tax Service. These companies carry out a range of different trades, targeting a net average annual return of 3% over the long term.
Efficient IHT planning
If you die within the two-year qualifying period required to achieve relief from IHT, provided your death is eligible, our insurance will cover 40% of your initial investment, to help pay any IHT liability.
Access
Investors can ask us to sell shares at any time. We aim to ensure that investors can sell their investment quickly if required. If you require us to sell your shares, there is a process to return your money at your request, whether regularly or ad hoc. Most withdrawal requests are typically processed within three months, though in exceptional circumstances this could take over a year.
Frequently asked questions
You need to take financial advice prior to deciding to invest. A financial adviser will be able to help you decide whether this investment is suitable for you, and they can also help you to complete your application.
What is Business Relief Insurance?
Business Relief Insurance—delivered through OITSPlus—is a way to benefit from Business Relief when investing in unquoted UK trading companies. These shares are expected to qualify for relief from inheritance tax (BR) if held for at least two years and still held at death.
Who is eligible for OITSPlus?
To qualify for OITSPlus, investors must be under 85 at the time of share allotment and complete a health declaration, which is part of the application form. Cover will start from the date we are in receipt of a fully processed valid application form and cleared funds for the relevant investment amount. This product is for advised clients only.
What is the health declaration?
There is no requirement for a medical examination or complicated questionnaires. Instead, investors need to complete a straightforward health declaration. It asks investors to confirm that in the last five years, they have not been diagnosed with or received active treatment for:
- Cancer
- Heart disease
- Stroke
- Dementia and/or Alzheimer’s
- Chronic lung condition
Additionally, investors must confirm that they have not been diagnosed with a terminal illness.
What does our Business Relief insurance cover?
Our insurance covers an ‘eligible’ death within the two-year and three-month period from the date we received your fully completed application and funds. Our insurance will cover 40% of the initial gross investment, up to a maximum settlement of £400,000.
What happens after the insured period ends?
When the insurance cover ends for OITSPlus, the portfolio will remain invested in the BR-qualifying companies, allowing it to be left to beneficiaries with relief from IHT.
Frequently asked questions
What is Business Relief Insurance?
Business Relief Insurance—delivered through OITSPlus—is a way to benefit from Business Relief when investing in unquoted UK trading companies. These shares are expected to qualify for relief from inheritance tax (BR) if held for at least two years and still held at death.
Who is eligible for OITSPlus?
To qualify for OITSPlus, investors must be under 85 at the time of share allotment and complete a health declaration, which is part of the application form. Cover will start from the date we are in receipt of a fully processed valid application form and cleared funds for the relevant investment amount. This product is for advised clients only.
What is the health declaration?
There is no requirement for a medical examination or complicated questionnaires. Instead, investors need to complete a straightforward health declaration. It asks investors to confirm that in the last five years, they have not been diagnosed with or received active treatment for:
- Cancer
- Heart disease
- Stroke
- Dementia and/or Alzheimer’s
- Chronic lung condition
Additionally, investors must confirm that they have not been diagnosed with a terminal illness.
What does our Business Relief insurance cover?
Our insurance covers an ‘eligible’ death within the two-year and three-month period from the date we received your fully completed application and funds. Our insurance will cover 40% of the initial gross investment, up to a maximum settlement of £400,000.
What happens after the insured period ends?
When the insurance cover ends for OITSPlus, the portfolio will remain invested in the BR-qualifying companies, allowing it to be left to beneficiaries with relief from IHT.
Risks to bear in mind
Capital at risk
This investment is high 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.
Insurance cover
Our insurance cover only applies to eligible deaths. Ineligible deaths, or a misrepresentation in the health declaration could result in the insurer refusing to settle a claim under the insurance policy.
Try our inheritance tax calculator
Check the potential inheritance tax due on an estate, including the potential impact of the residence nil-rate band.
Business Relief-qualifying investments from Octopus
Octopus Inheritance Tax Service
Our flagship service targets a steady, predictable return and has been helping investors pass on more of their wealth for over a decade.
OITSPlus
OITSPlus offers the same steady returns as the Octopus Inheritance Tax Service but offers two-year insurance cover.
This means that if an eligible advised investor dies within the two-year qualifying period required to achieve relief from inheritance tax, the insurance will help pay any IHT liability.
Octopus AIM Inheritance Tax Service
This service helps 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 protect more of their wealth from inheritance tax while keeping it in an ISA wrapper.
Business Relief-qualifying investments from Octopus
Octopus Inheritance Tax Service
Our flagship service targets a modest, predictable return and has been helping investors pass on more of their wealth for over a decade.
OITSPlus
OITSPlus offers the same modest returns as the Octopus Inheritance Tax Service but offers two-year insurance cover.
This means that if an eligible advised investor dies within the two-year qualifying period required to achieve relief from inheritance tax, the insurance will help pay any IHT liability.
Octopus AIM Inheritance Tax Service
This service helps 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 protect more of their wealth from inheritance tax while keeping it in an ISA wrapper.