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BPR Report supports ‘growing market for flexible IHT solution’

• 74-page Report reveals that 31 new BPR products have launched since 2011
• Largest adviser survey on BPR reveals growing popularity as estate planning solution
• Providers respond to investor and adviser concerns about BPR in video interviews

Intelligent Partnership (IP), the UK’s leading provider of education and insights on alternative investments, has launched the first industry report on Business Property Relief (BPR) for financial advisers and wealth managers. The 74-page report, which is accredited for three hours of structured CPD, was launched at a dedicated BPR Masterclass at the offices of BDO in London where aspects of BPR were explored in depth by ten industry experts including Jason Butler of Bloomsbury Wealth and David Brookes of BDO.

The BPR Report provides insight into the risks and rewards of BPR solutions and charts market growth. The first product utilising BPR was launched in 1995 and the number of products available has grown 90% in the last decade, according to IP’s Report.

Daniel Kiernan, Research Director at Intelligent Partnership, commented: “There were fourteen new BPR product launches in 2013, followed by ten in 2014; currently there are 37 products open for investment. IP believes that we are witnessing this growth as the market responds to the financial planning needs of wealthy baby boomers who make up the backbone of the majority of advisers’ client banks.”

The Report also includes surveys of investor and adviser attitudes to BPR. A survey of 167 advisers active in alternative investments found that, of the 94% who recommend BPR products, the majority do so because of the speed of IHT mitigation compared to other solutions.

Daniel Kiernan commented: “There is a growing need for more flexible estate planning solutions that provide IHT relief without forcing investors to make irreversible financial planning decisions. Longer life expectancy means that people cannot gift money away that they may need for future living expenses – particularly care expenses. Products that utilise BPR are the only ones that provide IHT mitigation and allow ongoing access to the funds.”

Despite the possibility of a rise in the IHT threshold, 90% of those surveyed were undeterred from recommending BPR products. However, 58% of advisers cited liquidity as one of their top five concerns when recommending BPR, followed by investment risk (55%), lack of transparency (46%), and high costs (34%).

Commenting on adviser concerns, Daniel Kiernan said: “Liquidity, investment risks, suitability and the ultimate exit strategy are all factors that are making advisers hesitate to recommend BPR products – perhaps indications of where the industry can do more to communicate their message and assuage these fears. With 95% of advisers expecting to do more BPR business in the next five years, the knowledge and insight from our BPR Report will increase their confidence and expertise.”

Adviser concerns were addressed at the BPR Masterclass by a panel of speakers including Tony Mudd of St James’s Place; Jason Butler of Bloomsbury Wealth and David Brookes of BDO. Video highlights from the Masterclass and individual interviews with speakers are available to view at https://intelligent-partnership.com/research-format/video/.

The first industry report on Business Property Relief has been published with the support of Blackfinch, TIME Investments, Close Brothers, Foresight Group, Ingenious Investments, Oxford Capital, and Puma Investments. Advisers interested in finding out more about investment products that utilise BPR can download a free copy of the 74-page BPR Report by clicking on the button below.

Notes for Editors

About Intelligent Partnership
As the UK’s leading curator of education and insights on alternative investments, Intelligent Partnership increases awareness and engagement amongst intermediaries, providing them with the tools and information to speak knowledgeably with their clients about a broader range of investment options. Insights are delivered year-round through a programme of content that includes award-winning* digital and printed reports, video content, and live events – which are accredited for Continuing Professional Development (CPD) by the Chartered Insurance Institute (CII), Institute of Financial Planning (IFP) and Personal Finance Society (PFS). This content is aimed at its 5,000+ subscriber community of advisers, wealth managers and financial services professionals who are all interested or active in alternative investments. Find out more at https://intelligent-partnership.com/.

Media enquiries:
To request a copy of the BPR Industry Report, to arrange a follow-up interview with Daniel Kiernan, any of the speakers from the BPR Masterclass or sponsors of the Report, please contact Alex Evans, Content Director, on 020 3375 1702 or email alex@intelligent-partnership.com.

*Intelligent Partnership was named Joint Winner of the Best Innovation Award at the 2014 EISA Awards for its Alternative Investment Report Series.