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FOREWORD
Welcome to the first industry report focused purely on
Business Property Relief.
We know that the baby-boomer generation makes up the backbone
of most advisers’ client banks, forms the largest cohort of the UK
population and controls over 80% of private wealth. As they
finish their working lives and start to look ahead, for many of
them ensuring that they pass on their wealth becomes a significant
financial planning objective.
We also know that estate planning is an area where advisers can
add value for their clients - research has shown that three quarters
of consumers are not confident that they could effectively reduce their
inheritance tax (IHT) liability without professional help, and that
estate planning is one of the areas where clients are prepared to pay
for advice.
One of the most effective, but underutilised estate planning
solutions is Business Property Relief (BPR). Originally
conceived as a way of reducing the burden of inheritance tax on
small businesses, it has evolved into a small industry of focused
investment products that promise to help suitable investors mitigate
their IHT bill. In contrast to more conventional solutions, BPR
solutions promise swift relief, uncomplicated structures and ongoing
access to funds.
Now BPR based solutions aren’t going to be for everybody. They
come with risks attached: there is investment risk, liquidity risk
and no cast-iron guarantee of IHT relief. But the industry is
mature, the products have a good track record and the other side of
that risk equation - doing nothing - does guarantee a 40% loss on
all assets above the nil rate band of £325,000 (frozen until 2017).
So we think that this is a timely report - an in depth review of
the BPR product industry that should help advisers and wealth
managers develop their understanding of a range of products that
will meet some of the most important needs of some of their most
valuable clients.
GuyTolhurst
Managing Director
Intelligent Partnership
COPYRIGHT © INTELLIGENT PARTNERSHIP 2015
EDITORIAL
Daniel Kiernan
Samantha Goins
CREATIVE
Mar Alvarez
SUB-EDITING
Guy Tolhurst
RESEARCH
Samantha Goins
Derek Skrzypek
MARKETING
Alex Evans
Michelle Powell
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