Due diligence provider DD|hub has launched due diligence for inheritance tax planning portfolios, including services from Brooks Macdonald, Close Brothers, Investec, Octopus, Thorntons Investments and Whitman Asset Management.
IHT tax levies are at record levels, with recent Government figures revealing that the Treasury raked in £5.3 billion in IHT receipts between April and December last year. This is £700 million more than in the same period of 2021.
The £325,000 IHT threshold has remained at the same level since April 2009 and will remain frozen until at least 5 April 2028.
DD|hub said that IHT planning has become an increasingly fruitful area for advisers with more clients impacted, largely as a result of the boom in property wealth. One planning strategy gaining attention is investing in shares qualifying for business relief but because of the riskier nature of investments, advisers will need to understand how investment managers deliver this service.
The firm said key questions to ask a provider include:
- How experienced are they?
- What are the key risks?
- How many portfolios have been reviewed and settled by HMRC?
- How do they validate whether a particular shareholding would qualify for BR?
- How do they monitor holdings on an ongoing basis?
- How quickly might monies be invested?
This information, alongside standard due diligence questions, is free for advisers to access on DD|hub.
Chris Jones, director of DD|hub said in the absence of advisers being able to rely on marketing information from providers, the firm wanted to design a streamlined online system to help them, with scoring and reporting tools to evidence their compliance process in line with PROD and Consumer Duty requirements.
Jones said: “This is another step in our journey to supply advisers with the information they need to meet the FCA’s due diligence expectations. There are lots of good research tools out there but none which carry the depth of due diligence data the FCA expects advisers to look at so we’re delighted to fill this critical gap.”
Jones added: “IHT business relief portfolios are a particularly important area for advisers to understand before they make any recommendation and we’re delighted to help advisers with these free tools.”
