Helping your clients grow and preserve their legacy

Due to the high risk nature of this service, it is only available through a qualified financial adviser.

Inheritance Tax (IHT) has been called the 'voluntary tax'. According to the HMRC, the total IHT paid in 2017/2018 tax year was more than £5.5 billion*. Sound financial planning could have diverted much of this to loved ones instead of the taxman.

CITS is a specialist, discretionary investment management service designed to provide accelerated relief from IHT by investing in BPR qualifying shares quoted on the Alternative Investment Market (AIM) and the NEX Exchange Growth Market.

Providing each investment in the portfolio has been held for two years at death, all the capital invested and any growth, qualifies for BPR and therefore is not subject to IHT.

CITS is one of the longest running AIM-based IHT services with a successful track record. Since its launch in March 2001, it has proved effective in protecting the value of clients’ estates from IHT.

Benefits for your clients:

  • The amount invested falls out of their estate after as little as two years;
  • No loss of control or ownership of the clients’ assets;
  • No costly legal structures to establish or maintain;
  • Can be chosen by persons acting under a power of attorney as an investment-based solution; and
  • Assets can be held in an ISA wrapper to provide further tax efficiency; and
  • BPR assets that have accrued a two year holding period can be gifted in to discretionary trusts without being considered a Chargeable Lifetime Transfer.

The service invests in shares listed on the Alternative Investment Market (AIM) and the ICAP Securities and Derivatives Exchange (ISDX) markets. In order to reduce risk, we aim to build a diverse portfolio of well-managed companies with the potential to deliver good returns over a two to five-year period.

CITS uses widely accepted tax reliefs that are clearly outlined by HMRC. You can keep control of your capital and can access it should your circumstances change, although this will mean giving up the IHT benefits.

Important information

The service is not a capital protection service and your capital is at risk. The service is dependent on relevant tax legislation remaining in force. For a fuller disclosure of the risks your adviser should ask you to read the Close Brothers Asset Management Terms and Conditions and CITS application form.

*HMRC: HMRC Tax & NIC receipts

Want to know more about CITS?

          

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01606 810325


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Please be aware, the value of investments can fall as well as rise and that past performance is not a reliable indicator of future returns and you could get back less than invested. Click here to understand the risks associated with investing. Calls to any number may be recorded for training and monitoring purposes. This site uses Cookies.