Foresight Accelerated Inheritance Tax Solution
Designed to uniquely combine the benefits of Business Relief and Life Insurance, while investing sustainably to protect future generations.
The Foresight Accelerated Inheritance Tax Solution (Foresight Accelerated ITS) uniquely blends [Business Relief (BR) and life insurance, giving investors immediate IHT mitigation. The innovative solution works by investing in shares that should qualify for BR, which renders shares exempt from IHT after being held for two years. The integrated Insurance Cover is designed to give additional peace of mind during this initial two-year period.
Since the Foresight Accelerated ITS was launched in 2016, over £300 million has been invested, with 99% of claims having been successful.
No
medical examination or questionnaire
40%
Cover of Net Investment Amount
£25,000
Minimum subscription amount
£1 million
Maximum Net Investment Amount
for individual investors and £2 million for joint investors
Insurance Categories
Category A:
For investors between 62 and 85 (inclusive).
Single Life Cover: Provides protection resulting from death by any cause after 90 days and Accidental Death during the first 90 days.
Joint Life Second Death Cover: Provides immediate life insurance protection resulting from death by any cause.
| Single Life Cover | Joint Life Second Death Cover | Joint Life Second Death Cover | |
|---|---|---|---|
| Foresight Initial Charge | 2.50% of Total Subscription Amount | 2.50% of Total Subscription Amount | 2.50% of Total Subscription Amount Annual |
| Management Charge | During Initial Two-year Period: 3.95% (+VAT) of Net Investment Amount (Annual) | During Initial Two-year Period: 1.22% (+VAT) of Net Investment Amount (Annual) | During Initial Two-year Period: 2.49% (+VAT) of Net Investment Amount |
| After Initial Two-year Period | N/A | N/A | N/A Annual |
| Administration Charge | 2.00% (+VAT) of Investee Company Net Assets (Annual) | 2.00% (+VAT) of Investee Company Net Assets (Annual) | 2.00% (+VAT) of Investee Company Net Assets |
Category B:
For investors between 86 and 89 (inclusive)
Single Life Cover: Provides protection resulting from death by any cause after 180 days and Accidental Death during the first 180 days
Joint Life Second Death Cover: Provides protection resulting from death by any cause after 100 days and Accidental Death during the first 100 days
| Single Life Cover | Joint Life Second Death Cover | Joint Life Second Death Cover | |
|---|---|---|---|
| Foresight Initial Charge | 2.50% of Total Subscription Amount | 2.50% of Total Subscription Amount | 2.50% of Total Subscription Amount |
| Annual Management Charge | During Initial Two-year Period: 5.80% (+VAT) of Net Investment Amount | During Initial Two-year Period: 3.59% (+VAT) of Net Investment Amount | During Initial Two-year Period: 2.49% (+VAT) of Net Investment Amount |
| After Initial Two-year Period | N/A | N/A | N/A |
| Annual Administration Charge | 2.00% (+VAT) of Investee Company Net Assets | 2.00% (+VAT) of Investee Company Net Assets | 2.00% (+VAT) of Investee Company Net Assets |
The Foresight Inheritance Tax Service (ITS), and Accelerated Inheritance Tax Service (AITS) have both been awarded 5 Star Ratings by Defaqto, the UK's leading ratings agency, for product features and performance.
Defaqto is one of the UK's most trusted sources of financial market intelligence, supporting financial institutions, intermediaries and consumers to make smarter financial decisions. They maintain the UK’s largest financial product database and use proprietary research methodology to develop independent ratings, reviews and insights. You can read more about them here.
In their Diamond Review, Defaqto stated that the Foresight Inheritance Tax Service offers an excellent proposition relative to the peer group as indicated by the Defaqto 5 Diamond Rating; and in the 5 Star review, that the Foresight Inheritance Tax Service provides one of the highest quality offerings on the market.
The easiest way to submit an application into the fund is through our online portal available for advisers. If you have never logged into the portal please contact clientonboarding@foresightgroup.eu and the team will send you a login link.
- Under ‘Applications’ on the left-hand panel, you can submit an application for each open retail fund.
- You will be required to complete most sections, anything in red is a mandatory field.
- Once you have completed all relevant sections, click ‘Email Form to Investor’.
- The investor will then receive an email informing them that an application has started on their behalf.
- The investor must click on the ‘Complete application’ link, check over the details on the form, tick the investor signature box then click 'Return form to Adviser' (the investor will not need a login link to the portal to complete this).
- You will then receive an email to finalise the application and submit it. You can view your pending and submitted applications under Home.
- You will receive an acknowledgement email once the application has been processed.
If you have any questions about the application process, please email us at clientonboarding@foresightgroup.eu. Please note the portal is currently only available for advisers.
When you subscribe to the Foresight Accelerated ITS, your subscription amount, minus the agreed charges, will be used to acquire shares in one or more trading companies on your behalf. We invest across a range of underlying trades, including infrastructure and energy, to ensure you have a diversified portfolio of underlying investments.
The Foresight Accelerated ITS benefits from Insurance Cover for the first two years of your investment. The Insurance Cover available to you depends on if you are an individual investor (Single Life Cover) or joint investors (Joint Life Second Death Cover).
Once you have held your shares for two years, they should be exempt from IHT. If you die within the initial two-year period, and you are protected by your Insurance Cover, the insurance proceeds will mitigate the IHT liability on your investment.
As with any shareholding, should you wish to access your investment, you can request that some or all of your shares are sold, subject to liquidity. Any withdrawal reduces the value of your investment. Partial withdrawals are not permitted during the Initial Period other than to meet ongoing adviser fees. During the Initial Period, only a full withdrawal will be possible, however, please note that this will terminate your cover under the Insurance Policy and you will lose your IHT shelter. We will assist you in joining the Foresight ITS should you wish for any part of your investment to continue in a Foresight BR solution.
Single Life Cover - For individual investors only and pays out on an eligible death within the initial period. Maximum net investment: £1 million. Joint Life Second Death Cover - For joint investors only and pays out on the second death only (both deaths must be within the initial period and must be eligible deaths). Maximum net investment: £2 million.
Please speak to your financial adviser if you are interested in investing in the Foresight AITS.
Important Information
Capital is 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 invest. Foresight Inheritance Tax Solution and Accelerated Inheritance Tax Solution (“ITS” and “AITS”) should be considered longer-term investments and may be higher risk and more difficult to realise than an investment in listed securities. Tax reliefs are dependent on investee companies continuing to qualify for Business Property Relief and investors’ individual circumstances. Current tax rules are subject to change. A failure to meet the BPR qualifying requirements could result in the investments losing their inheritance tax exempt status, resulting in adverse tax consequences for investors.
AITS is a part of the ITS Fund and is an integrated Business Relief and insurance solution that gives investors immediate inheritance tax mitigation. For investment in the AITS Fund, insurance cover is only available to investors who meet the eligibility criteria for the relevant Insurance Category. Failure to meet such criteria or a misrepresentation in the eligibility declaration could result in the Insurer refusing to settle an investor’s claim under the Insurance Policy.
Investors should only invest in ITS and AITS on the basis of information contained in the applicable Documentation (including any Brochure, Fund Prospectus, Offer Documents, Key Information Documents and Disclosure Documentation) or Terms and Conditions of Investment as appropriate.
Please refer to our Risk Warnings page for full general and specific risk information.