Inheritance Tax (IHT) is a concern for many of our clients who want to ensure that their loved ones are able to reap the benefits of their hard work once they have gone.
At Close Brothers Asset Management we offer a number of ways to help mitigate the impact of IHT, specifically through our Close Inheritance Tax Service (CITS).
The Close Inheritance Tax Service (CITS) is a transparent and cost effective service which could help you to optimise your IHT position after as little as two years, without the need for complex and costly legal arrangements.
Please note that, due to the higher risks involved with these investments, CITS is only available through a qualified financial adviser.
CITS invests in assets that qualify for Business Property Relief (BPR). If you invest in these assets at least two years before you pass away – and are still holding the assets at the time of your death – the money invested is exempt from IHT. Which means that by adopting this approach, you could improve your IHT position in as little as two years.
CITS could be suitable if you have £50,000 or more in cash that you do not need for income or other short-term requirements. This solution aims to grow and preserve capital, but you must be ready to accept high risk and high volatility. There is no guarantee the expected outcome will be achieved and results may vary substantially over time.
CITS is flexible, meaning that you can take your money out if you need to, however, you may lose any IHT benefits when you do and you may not receive back the original amount invested.
The CITS has enjoyed a successful track record since it launched in 2001. We are one of the longest running AIM-based IHT services on the market and have a proven record of helping to protect the value of our clients’ estates from IHT. Please be aware that past performance is not an indicator for future performance and you may not receive back the original mount invested.
As with all our services, CITS is managed by highly experienced investment experts. Their number one objective is to preserve and grow your capital, managing risk by building diverse portfolios that have the potential to deliver solid returns over a two to five year horizon.
CITS is not a capital protection service and the capital is at risk. The service is dependent on relevant tax legislation remaining in force. For a full disclosure of the risks, read Appendix A in the Client Agreement.
Before you invest, make sure you feel comfortable with the level of risk you take. Investments aim to grow your money, but they might lose it too.