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Business Relief
Sustaining wealth for future generationsExplore how BR can help preserve your wealth by investing in qualifying trading companies, offering potential inheritance tax benefits and long-term growth opportunities.
Overview
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment. Take 2 mins to learn more.
Overview
Business Relief (BR) was introduced as part of the 1976 Finance Act in order to allow businesses to be passed on through generations without incurring an inheritance tax (IHT) liability. The scope of BR has evolved over the years to become a method of investing for individuals looking to reduce a potentially large IHT liability at the time of their death.
Who could benefit from BR investing?
An individual who:
- Wants to shelter their assets from inheritance tax while retaining access to their capital
- Feels they have left estate planning too late
- Has a lasting Power of Attorney (POA) in place and wants to mitigate inheritance tax
- Has loan trusts and is concerned about the inheritance tax due on the initial capital
- Is an individual looking to set up a family investment company with inheritance tax efficiency
- Has sold their business within the last three years
- Is a trustee looking to mitigate the impact of periodic charges or exit charges
- Would like to put more than the Nil-Rate Band (NRB) into a discretionary trust
The risks
- Tax rules are subject to change
- If you do not hold the investment at the time of death, you will lose the tax exemption
- Investing in small companies is inherently risky. These companies may not perform as hoped and in some circumstances may fail completely
- Your capital is at risk; You may not get back as much as you put in and in the worst case scenario you could lose all of your capital
- BR investments should be considered as a longer term investment and may be higher risk and more difficult to realise than other securities listed on the London Stock Exchange
Which companies qualify for BR?
Unquoted
Privately owned companies that are not listed on the main London Stock Exchange (LSE) and carry out a qualifying trade.
Quoted
On the Alternative Investment Market (AIM) and carry out a qualifying trade
Qualifying Trades
Companies must carry out a qualifying trade. Companies that don’t typically qualify include mining, investment and property companies.
What are the benefits of BR?
Foresight Business Relief products
Foresight has three BR products.
The Foresight Inheritance Tax Solution ("Foresight ITS") and Foresight Accelerated Inheritance Tax Solution ("Foresight AITS"), which together constitute the Foresight Inheritance Tax Fund, and the Foresight Enhanced Inheritance Tax Fund ("Foresight Enhanced IHT").
Averon Park
Averon Park is the core trading company within the Foresight Inheritance Tax Fund.
To find out more about Averon Park and its trading interests, click here.
Foresight Inheritance Tax Solution
Designed to offer simplicity and flexibility, while investing sustainably to protect future generations.
Foresight Accelerated Inheritance Tax Solution
Designed to uniquely combine the benefits of BR and life insurance.
Foresight Enhanced Inheritance Tax Fund
Offering enhanced income potential, while helping to preserve wealth through 100% inheritance tax relief.
Defaqto ratings
The Foresight Inheritance Tax Solution (ITS) and Accelerated Inheritance Tax Solution (AITS) have both been awarded 5 Star Ratings by Defaqto, the UK's leading ratings agency, for their 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.
In their Diamond Review, Defaqto stated that the Foresight Inheritance Tax Fund 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 Fund provides one of the highest quality offerings on the market.
Video library
Below are some useful videos on the benefits of our BR solutions
Client planning scenarios
Our planning scenarios illustrate how tax-efficient investments can be used to address the diverse needs of clients.
AITS vs Discounted Trust
What is the benefit of Foresight AITS, compared to a Discounted Gift Trust (DGT)?
Exiting AIM stocks
How can a replacement property provision mitigate IHT on AIM portfolio exits?
Investment bond surrender
What are the benefits of moving deferred income into a tax-efficient shelter?
ITS Life Interest Trust
How can someone become eligible for inheritance tax exemption?
Contact us
Want to know more about our BR funds?
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 (“ITS”), Accelerated Inheritance Tax Solution (“AITS”) and Enhanced Inheritance Tax Fund (“EITS”) should be considered longer-term investments and may be higher risk and more difficult to realise than an investment in listed securities. Investments will be made in small unquoted companies, which carry a higher risk than many other forms of investment. These investments will be illiquid and may expose you to a significant risk of losing all of the money you invest. 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, AITS and EITS 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.
MICAP is part of Defaqto, an independent researcher of financial products and is not authorised to provide financial advice. Foresight does not have any influence or control over the Defaqto ratings or MICAP reviews including the methodology used. Foresight cannot accept responsibility for their accuracy and should not be relied upon for investment decisions. Ratings and reviews, including their use by Foresight, might be subject to change and are not indicative of any future performance. For further information on Defaqto and MICAP, please refer to the following resources: https://www.defaqto.com, www.micap.com/review/69 and www.micap.com/review/565.
