Indeed, the relief exists to act as an incentive for investors to take on the risk of backing qualifying businesses with patient capital. That said, investors need to be aware that tax rules could change in future. Tax treatment is dependent on individual circumstances and tax relief depends on companies maintaining their qualifying status.
Volatility and liquidity are also considerations. The shares of unquoted companies and those quoted on the Alternative Investment Market can fall or rise in value by more than shares quoted on the main market of the London Stock Exchange. They may also be harder to sell.
This video helps explain how BPR can help
If you have a client who is looking to sell their business, or who has sold a business in the last three years, it’s worth looking at BPR as one possible solution for an inheritance tax liability they may have.
There is a short video on the Octopus website that explains how BPR could help a client who has sold a business in the last three years. You can find it here.
