TIME Investments reports increasing interest in business relief from advice firms, as they look for ways to avoid hefty inheritance tax bills for their clients.
Nearly a fifth (17%) of advisers now recommend business relief as the preferred IHT solution for clients at least once a month, with a further 32% recommending it every three months. It comes as inheritance tax receipts continue to rise, hitting £5.4 billion in the tax year 2020-21.
Business Relief offers investors a faster route to IHT relief than gifting and trusts, providing IHT exemption after just two years.
TIME Investments said its IHT solution TIME:Advance, which is business relief-qualifying, had seen a 33% increase in inflows in the year-to-date compared to the same period of 2019-2020, resulting in the solution reaching assets under management of £750 million in October.
The investment firm said the pandemic had prompted one in three (29%) retails investors aged between to 55 and 64 to think more about their mortality and seek estate planning advice to put plans in place.
Nigel Ashfield, managing director of TIME Investments, said: “TIME:Advance has been recognised as a market-leading IHT planning solution as demonstrated by the AUM milestone and the frequency with which advisers are using BR for their clients’ estate planning.
“The pandemic has also focused advisers and their clients on ensuring appropriate plans are in place.”
