BR report 2018

81 80 STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Investors can mitigate IHT by holding BR qualifying assets till death Fee structures in BR can sometimes be unclear BR is becoming more popular with advisers for estate planning. The rise in use of BR will only benefit fledgling UK businesses Changes to other estate planning mechanisms could change the demand for BR Investment in BR contributes to growing UK businesses There is poor knowledge of BR among both investors and some advisers The need for diversification promises to direct funding to more and more companies as the popularity of BR increases IHT mitigation is not guaranteed by holding BR assets upon death, and requires approval from HMRC BR prevents the break up of family businesses BR investments in AIM can be prone to volatility BR assets do not require seven years to be exempt from IHT - as is the case with some gifting and trust structures If not properly monitored, changes to investee company activities could lead to loss of relief There is growing competition in the market, which benefits investor Unlisted BR investments focused on a single company lack diversification AIM quoted BR investments have the opportunity for significant growth, and the tax relief incentivises investors to weather the volatility storm BR comes with investment risk BR is more straightforward than other estate planning methods, e.g., there is no need for complicated legal structures as required by trusts Liquidity may not be readily available BR SWOT ANALYSIS OVERVIEW OF BR S W O T REFERENCES APPENDIX 1 https://www.ftadviser.com/Articles/2017/07/28/FTA-iht- receipts-DF-280717 2 https://www.ftadviser.com/your-industry/2017/11/22/ inheritance-tax-receipts-to-reach-6-5bn/ 3 https://www.gov.uk/government/uploads/system/uploads/ attachment_data/file/632797/IHTNationalStatisticsCommentary. pdf 4 https://www.ons.gov.uk/peoplepopulationandcommunity/ birthsdeathsandmarriages/deaths/bulletins/ excesswintermortalityinenglandandwales/ 2015to2016provisionaland2014to2015final 5 https://www.2020delivery.com/news/2017-mortality-analysis/ 6 https://www.ons.gov.uk/peoplepopulationandcommunity/ populationandmigration/populationestimates/datasets/ vitalstatisticspopulationandhealthreferencetables 7 https://www.ftadviser.com/your-industry/2017/11/22/ inheritance-tax-receipts-to-reach-6-5bn/ 8 https://www.gov.uk/government/uploads/system/uploads/ attachment_data/file/632828/Table_12-2.pdf 9 https://www.gov.uk/government/uploads/system/uploads/ attachment_data/file/661398/Patient_Capital_Review_ Consultation_response_web.pdf 10 http://www.ifb.org.uk/advocacy/about-family-business/ 11 http://www.ifb.org.uk/knowledge-hub/about-family-business/ 12 https://www.professionaladviser.com/professional-adviser/ news/3025611/hammond-calls-for-iht-review 13 http://www.whatinvestment.co.uk/chancellor-orders-a-major- review-of-iht-2555066/ 14 https://www.gov.uk/government/uploads/system/uploads/ attachment_data/file/681434/OTS-IHT_Review_Scoping_ document.pdf 15 http://webarchive.nationalarchives.gov.uk/20130102210222/ http: /www.hm-treasury.gov.uk/d/ots_review_tax_reliefs_final_ report.pdf 16 https://www.ifs.org.uk/publications/mirrleesreview/ 17 https://www.gov.uk/government/publications/office-of-tax- simplification-complexity-index 18 https://www.gov.uk/government/publications/research-into- the-influence-of-iht-reliefs-and-exemptions 19 http://www.ifb.org.uk/media/3502/ifb-patient-capital- response.pdf 20 https://www.gov.uk/government/uploads/system/uploads/ attachment_data/file/414963/bis-15-151-small-business-survey- 2014-sme-employers_v1.pdf 21 https://www.babson.edu/Academics/centers/blank-center/ global-research/gem/Documents/gem-2006-global-report.pdf 22 https://www.gov.uk/government/uploads/system/uploads/ attachment_data/file/660027/Behavioural_evidence_around_ Inheritance_Tax_and_reliefs.pdf 23 https://www.oldmutualwealth.co.uk/Media-Centre/2017-press- releases/march-20171/press-comment-70-of-people-surveyed- know-nothing-about-the-new-residence-nil-rate-band/ 24 https://www.moneymarketing.co.uk/first-death-residence-nil- rate-band/ 25 https://www.zoopla.co.uk/press/releases/who-wants-to-be-a- property-millionaire-zoopla-reveals-there-are-now-more-than- m-homes-in-britain/ 26 https://www.zoopla.co.uk/press/releases/who-wants-to-be-a- property-millionaire-zoopla-reveals-there-are-now-more-than- m-homes-in-britain/ 27 http://www.londonstockexchange.com/exchange/ prices-and-markets/stocks/summary/company-summary/ GB0007281198GBGBXAMSM.html 28 http://www.londonstockexchange.com/exchange/ prices-and-markets/stocks/summary/company-summary/ GB00B13GSS58GBGBXASQ1.html 29 http://www.fundslibrary.co.uk/FundsLibrary.DataRetrieval/ Documents.aspx?type=sl.ra.full&id=428b514a-548a-4982-9af7- 1f5ec2ea9835&user=hl_website_documents 30 http://www.londonstockexchange.com/exchange/news/ alliance-news/detail/1519210208563146200.html 31 http://www.londonstockexchange.com/exchange/ prices-and-markets/stocks/summary/company-summary/ GB0002259116GBGBXAMSM.html 32 http://www.londonstockexchange.com/exchange/news/ market-news/market-news-detail/GHH/13445467.html 33 https://www.which.co.uk/elderly-care/financing-care/ financing-a-care-home/381597-care-home-fees 34 https://visual.ons.gov.uk/what-are-your-chances-of-living-to-100/ 35 http://www.bbc.com/future/story/20151001-why-women-live- longer-than-men 36 https://www.ftadviser.com/pensions/2017/09/18/one- in-five-bury-heads-in-the-sand-about-social-care/?utm_ campaign=FTAdviser+news&utm_source=emailCampaign&utm_ medium=email&utm_content 37 https://www.theguardian.com/society/2018/mar/20/jeremy- hunt-confirms-individual-costs-for-social-care-capped 38 https://business.unbiased.co.uk/press-releases/31-million-uk- adults-at-risk-of-dying-without-a-will-2-10-2017 39 https://www.laingbuisson.com/shop/adult-specialist-care-2nd- edition/