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Help your clients shelter their assets from Inheritance Tax (IHT)

The Close Trading Companies

Those of your clients who are concerned about their IHT liabilities and wish to shelter at least £100,000 could consider establishing a Close Trading Company:
a straightforward, practical and transparent mechanism for sheltering capital from IHT.

Full protection from IHT and a potential annual return
Not only are most IHT mitigation options complicated, they also entail sacrifices that many of your clients may find difficult to make. Many schemes require the individual to lose some or all control of the assets to be protected, or to judge when the moment has come to consider gifting capital.

 

That's not the case as far as The Close Trading Companies (CTC) is concerned.

 

Your client never loses sight of their capital and the scheme becomes fully effective in just two years, making it appealing to people who started their IHT mitigation plans relatively late in life.

 

Furthermore, the scheme not only protects the assets from IHT, but is also capable of producing a modest return for your clients.

 

Taking advantage of Business Property Relief to mitigate IHT liabilities

It's widely known that the assets of a family business can be either wholly or partially exempt from IHT thanks to Business Property Relief (BPR). What isn't quite so well known is that the capital invested in specific assets the business owns, or has an interest in, also qualifies for BPR.

 

In other words, you don't need to have a conventional business with employees, customers, or premises to benefit from BPR - all you need is a trading company.

 

By establishing such a business, every penny of capital invested in that business is shielded from IHT after the qualifying period.

 

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