For Professional Clients Only
- Dennis is 63 and has signed a contract for sale of his business Orange Software for £3 million
- Dennis would like to take some time out and then potentially get involved in a start-up business or go travelling
- Without income from the business Dennis will still need access to income to supplement his pension planning
- Orange was a trading business which qualified for Business Relief (BR)
- Unfortunately as a contract for sale has now been agreed, on his death there would be Inheritance Tax (IHT) to pay of £1.2 million
- Dennis would be willing to gift some of his sale proceeds but is concerned about living 7 years. He would be willing to pay for life assurance but due to his health, he has been told he may not be underwritten
Invest part of the proceeds in BR qualifying shares
- As Orange Ltd was already BR qualifying, this is transferable between BR Qualifying assets
- No need to wait 2 years for BR IHT exemption
- Access to capital if needed to fund new start-up
- Access to income to supplement retirement
- Dennis has up to 3 years to reinvest the proceeds**
- The shares can then be placed in Trust without a Chargeable Lifetime Transfer tax applying (See case study on BR and Trusts)
Note – BR applies to qualifying shares held for 2 of the previous 5 years
Capital is at risk and the investor may not get back the amount invested
For more information about how our tax products can help with this scenario, please contact our tax team using the details below.
Issued by LightTower Partners, 10 Throgmorton Avenue, London, EC2N 2DL. LightTower Partners is a division of LGBR Capital London Limited. LGBR
Capital London Limited is an Appointed Representative of Laven Advisors LLP, which is authorised and regulated by the Financial Conduct Authority
The information contained within is only directed at professional clients and eligible counterparties and the services or investments referred to in
this document are only available to professional clients and eligible counterparties. Retail clients should not rely on the information herein.
All opinions and judgements expressed in this document and all projections, forecasts and statements concerning future events or possible results
achieved by LightTower Partners are personal opinions, judgements, projections, forecasts and statements of LightTower Partners and result from
the interpretation by LightTower Partners of the information that was in its possession at the date of preparation of this introductory presentation.
Prior performance is not indicative of future results, and there can be no guarantee with respect to whether the financial objectives of the
investments by LightTower Partners may be achieved in the future. As a result, investors must form their own independent view as to such opinions,
judgements, projections, forecasts or statements.
Risks are inherent to investments and engaging in any investment activity may expose you to a significant risk of losing all of the property or other