Skip to main content

For Professional Clients Only

Orange Software

  • 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

The Problem

  • 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

The Solution

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.

020 7071 3920

Download Case Study as PDF

Important Information

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 Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority number
606792. This document should not be regarded as constituting advice in respect of legal, taxation, investment or other matters. This document is intended to
be communicated solely to persons that fall within the FCA classification of ‘Professional Client’. LGBR Capital Limited operates as distributor of the investment
products and strategies of other selected providers. LGBR Capital does not manufacture investment products itself. Past performance is not a guide to future
performance; the value of an investment and income from it can go down as well as up. Contact the sender of this document if you would like further information
about any of the funds, including charges, expenses and risk considerations. Prospective investors are advised to consult their own professional advisers before
contemplating any investment. No representation or warranty expressed or implied is made or given by any person as to the accuracy or completeness of the
information contained in this email and no responsibility or liability is accepted for any such information. This material may not be distributed, published or
reproduced in whole or in part.

Get in Touch

Please do not hesitate to get in touch for further information on LightTower Partners or on the investment products we distribute.

Back to top