Do you enjoy paying a voluntary tax?

I am talking about Inheritance Tax (IHT), with an estimated 4 m people sitting on an estimated potential IHT liabilty of £60k and the nil rate band frozen @ £325k until at least 2015/16 is it any surprise that IHT receipts rose last year by 14%?

Well actually YES this is a voluntary tax as it can be mitigated.

One solution is an investment wrapper called the Inheritance Tax Service (ITS), there are a number of benefits to this product.

Unlike a potentially exempt transfer (PET) the ITS is not irrevocable, which means it has not been given away and remains fully accessible to the investor.

Unlike a PET which requires a full 7 year time period to be IHT free the ITS is IHT free after only 2 years as it benefits from Business property Relief (BPR).

Unlike a PET the ITS does not erode your Nil Rate Band leaving the full £325k intact.

There is no underwriting needed.

The investment amount is unlimited.

The ITS targets an investment return of 3% net of charges, bearing in mind there is a full 40% IHT tax saving after only 2 years.

This is ideal for older clients or clients in ill health, due to the shorter time period involved.

If you would like more information please call me on 01296 641868, or e mail me on

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Please note when reading any information on this website: past performance is no guide to future performance. The value of an investment may go down as well as up and an investor may not get back the full amount invested. Before investing, please ensure that you have read the information set out in the simplified prospectus, which includes full details of the charges. Any material available is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. Opinions expressed on this website represent the views of Stephen Baker Financial Consultants Ltd at the time of publication, are subject to change, and should not be interpreted as investment advice.

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