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
Investments should become exempt from inheritance tax after being held for two years, allowing them to pass free of inheritance tax upon death.
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.
Estate planning now and moving forward
Visit our inheritance tax post-Budget webpage
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.
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
Octopus Inheritance Tax ServiceInsight
The outlook for Fern Trading Limited
Ed Fellows, Head of the Octopus Inheritance Tax Service, shares his thoughts on the outlook for Fern in light of interest rate rises and inflation forecasts.
Octopus Inheritance Tax ServiceInsight
Fern’s approach to renewable energy
In this blog post, Matt Setchell, Head of Octopus Renewables, explains Fern’s approach to the renewable energy sector.
Octopus Inheritance Tax ServiceInsight
Fern’s approach to property lending
In this blog post, D’mitri Zaprzala, Head of Residential lending,
explains Fern’s approach to the property lending sector.
Octopus Inheritance Tax ServiceInsight
The investment process and the people who manage it
Sarah Grant, chair of the Octopus Investments Investment Committee, writes about how the various investment teams around Octopus operate and our product governance structure.
Octopus Inheritance Tax ServiceInsight
The investment strategy of the Octopus Inheritance Tax Service
Robert Skinner, head of the Octopus Inheritance Tax Service, writes about the investment strategy behind the product and what his team focuses on day to day.
The Knowledge Base – deep dive with Octopus on estate planning
A comprehensive technical bank of whitepapers for advisers and paraplanners.
Related webinars
On demand webinarBusiness Relief
Available now on demandOctopus Live on demand
Octopus Live in the Capital 2024 was a fantastic event that brought together financial advisers and leading figures from across the industry to drive the future of estate planning.
On demand webinarBusiness Relief
Available now on demandQuarterly update on the Octopus Inheritance Tax Service
Watch this quarterly webinar, where Ed Fellows, Investment Director, provides an update on the Service.
Duration: 44mins
On demand webinarBusiness ReliefTax-efficient investmentsCPD activity
Available now on demandFor Advisers: Getting Estate Planning Right
This webinar gives you an opportunity to introduce any relevant clients to inheritance tax and the key ways to plan for it, including Business Relief.
Duration: 1hour 2mins
On demand webinarBusiness ReliefTax-efficient investments
Available now on demandFor Investors: Getting Estate Planning Right
Feel confident in your estate planning conversations with your financial adviser and bring Business Relief investments to life for you.
Duration: 1hour 2mins
On demand webinarBusiness Relief
Available now on demandWriting Business Relief cases
Recommend Business Relief with confidence. Tune in for expert tips on soft skills, compliance, suitability and more.
Duration: 1hour