Clients with large ISA portfolios
An ISA offers valuable tax benefits during a client’s lifetime, but is still subject to inheritance tax along with the rest of their estate.
However, a client can transfer some or all their ISA investments into an ISA of BPR-qualifying shares. By doing so, they retain their ISA tax benefits, while also planning for inheritance tax.
It’s worth remembering that a BPR-qualifying ISA is likely to be higher risk than a mainstream stocks and shares ISA.
BPR-qualifying investments put a client’s capital at risk. The value of these investments, and any income from them, can fall as well as rise. Clients may not get back the full amount they invest.
Clients should also be made aware that tax treatment depends on individual circumstances and tax rules could change in future. In addition, tax relief depends on the companies they invest in maintaining their BPR-qualifying status.
The shares of unquoted and AIM-listed companies can be more volatile than shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
Learn more at The Estate Planning Show
For more planning ideas, tune into The Estate Planning Show, a two-part online event on the 18th and 19th May and 15th and 16th June.
Jessica Franks, Head of Tax
BPR-qualifying investments are not suitable for everyone. Any recommendation should be based on a holistic review of your client's financial situation, objectives and needs. We do not offer investment or tax advice. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London EC1N 2HT. Registered in England and Wales No. 03942880. Issued: May 2021. CAM0100169.
‘This is an Octopus Investments Paid Post. The news and editorial staff of the Financial Times had no role in its preparation’