BR Report 2019

69 68 SWOT ANALYSIS OVERVIEW OF BR STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Continuing access to renewables and energy generation assets AIM volatility highlighted recently Can provide solution to some difficult later life planning requirements - e.g. LPAs, tendency to be cash-heavy and exposed to IHT, pension contributions overflow Potential economic downturn threatens confidence in tax planning through an investment OTS called BR ‘straightforward’ Performance subject to the same downward pressures as other UK investments in the face of Brexit and geopolitical issues Can be used in conjunction with trusts to take assets outside of an estate with no fees FCA is increasing IHT investigations, so proper monitoring and expertise is required Longer term hold, so underlying valuations mean nothing until eventual realisation and have potential to ride out the storm Liquidity may not be readily available FCA is increasing IHT investigations, so the need for IFA expertise is amplified S ome sectors of underlying investments vulnerable to short term economic shocks BR contributes to investment into UK business at a crucial time Diversification concerns - how much is enough? Possibility for good value acquisitions in current climate Potential for changes to BR/IHT driven by government desire to close tax gap and offset Brexit losses S W O T APPENDIX REFERENCES 1 https://www.ftadviser.com/property/2019/04/24/ iht-receipts-increase-44-per-cent-in-a-month/ 2 https://assets.publishing.service.gov.uk/govern- ment/uploads/system/uploads/attachment_data/ file/715742/HMRCmeasuring-tax-gaps-2018.pdf 3 Canada Life, 3 April 2019 4 Estimated costs of principal tax reliefs HMRC Jan- uary 2019 5 Estimated costs of principal tax reliefs HMRC Jan- uary 2019 6 Table 12.2, Inheritance Tax Statistics 2015 to 2016, HMRC, August 2018 7 https://www.kctrust.co.uk/partner-blog/ blog/2018/wealth-transfer-in-the-uk-research- highlights 8 https://www.bdo.co.uk/en-gb/aim-insights/mar- ket-performance 9 https://citywire.co.uk/funds-insider/news/star- uk-investor-bullish-after-bruising-aim-sell-off/ a1165791 10 https://www.bdo.co.uk/en-gb/aim-insights/ aim-numbers 11 https://www.ftadviser.com/invest- ments/2019/03/18/fund-managers-urge-cau- tion-despite-market-rally/?page=1 12 https://www.ftadviser.com/invest- ments/2019/03/21/merian-s-heslop-pre- pares-for-higher-volatility/?page=1 13 https://www.uhy-uk.com/news-events/news/ value-of-daily-shares-trading-in-aim-listed-compa- nies-rises-by-9-over-the-last-year-despite-brexit- shock/?share=email 14 London Stock Exchange, AIM Statistics 2016 15 https://www.moneymarketing.co.uk/how-to-pre- pare-your-investment-for-the-brexit-deadline/ 16 https://theaic.turtl.co/story/5c865cc14c22613b- 24b4f81c?dm_i=OVU,66DJK,N712FR,OB3M0,1#!/ page/2/1 17 https://simplywall.st/stocks/gb/real-estate/aim- wjg/watkin-jones-shares 18 https://www.yourmoney.com/investing/aim-mar- ket-myths-opportunity/ 19 House of Commons Library, Energy Imports and Exports, October 2018 20 The impact of Brexit on the UK energy sector, Vivid Economics, March 2016 21 https://www.bloomberg.com/news/arti- cles/2018-12-17/these-are-the-stocks-to-watch- as-brexit-reaches-its-endgame 22 https://www.thisismoney.co.uk/money/mortgage- shome/article-6393103/Housing-crisis-set-contin- ue-developers-slow-housebuilding-ahead-Brexit. html 23 Daily Mail, September 2018 24 Reversing the decline of small housebuilders: Home Builders Federation 25 https://www.lovemoney.com/news/66220/ house-prices-biggest-risers-and-fallers-revealed?- source=10000277&utm_source=postoffice&utm_ medium=email 26 Analysis of the National Infrastructure and Con- struction Pipeline, Infrastructure and Projects Authority, December 2017 27 https://www.raconteur.net/infographics/the-fu- ture-of-uk-infrastructure?utm_source=email&utm_ medium=Newsletter&utm_campaign=Week- ly&utm_term=mar-21 28 https://www.investmentweek.co.uk/invest- ment-week/analysis/3072255/three-investment- themes-to-weather-short-term-noise/page/2 29 https://www.businessinsider.com/macquarie-re- search-best-performing-companies-after-brex- it-2016-6?r=US&IR=T#international-public-partner- ships-6 30 Economic & Fiscal Outlook, Office for Budget Re- sponsibility, March 2019 31 Inheritance Tax Statistics 2015 to 2016, HMRC, August 2018 32 Personal Pensions Statistics, HMRC, September 2018 33 https://www.professionaladviser.com/profession- al-adviser/news/3073020/lta-timebomb-to-hit- more-than-a-million-workers-royal-london?utm_ medium=email&utm_content=&utm_campaign=I- FA.SP.AM_Update_RL.EU.A.U&utm_source=PA. DCM.Editors_Updates&utm_term=&im_compa- ny=&utm_medium=email&utm_term=&im_ed- p=482529-3b5080ed3020eed3%26campaign- name%3DIFA.SP.AM_Update_RL.EU.A.U