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 Property Relief (BPR), 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

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.

Key risks

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 BPR-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.

BPR is assessed on a case-by-case basis  

We cannot guarantee that the investments we make will qualify for BPR in every case in the future. HMRC will only conduct a BPR assessment after the death of an investor, to confirm whether the companies invested in qualify for BPR at that time.

Learn more about the service

Invest in a trading business

Watch the video to see the impact our investors’ money is having on the UK economy.

Where we invest

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

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.

Who could benefit?

Inheritance tax is no longer a problem just for the very wealthy. These planning scenarios show how different types of clients can benefit from inheritance tax. planning.

Fill in your client’s details and we’ll email you an illustration straight away.

Try our inheritance tax calculator

Check the potential inheritance tax due on an estate, including the potential impact of the residence nil-rate band.

Fees and charges

Octopus initial charge:2%
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

Key documents

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

Key Documents

Octopus Inheritance Tax Service brochureDownload
Octopus Inheritance Tax Service terms and conditionsDownload
Octopus Inheritance Tax Service application formDownload
Octopus Inheritance Tax Service top-up formDownload
Octopus Inheritance Tax Service product overviewDownload
How to invest

How to invest

If you’re ready to start an application for your client, apply online via the button below.

How to invest

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

Webinars

Recorded video webinar: The Octopus Inheritance Tax Service

Join Jessica Franks (inheritance tax business line manager), Sarah Grant (head of banking relationships) and Paul Latham (chief executive of Fern Trading) for a detailed look at how the Octopus Inheritance Tax Service works. 

We’re here to support you

If you’ve got a question about any of our products or services, please get in touch.

Contact our team

Got a question?
Call us at 0800 316 2067