For professional advisers and paraplanners only. Not to be relied upon by retail clients.
Why there’s a good chance the need for estate planning could grow your business
By Jessica Franks, Head of Investment Products at Octopus Investments
Rising inheritance tax receipts
Inheritance tax receipts have been growing at a remarkable rate, by almost £1 billion a year.[1]
While asset values have soared to ever higher values, the allowances available for an estate haven’t meaningfully increased in a long time.
The nil rate band has been frozen at £325,000 since 2009. The residence nil rate band is set at £175,000. Neither are increasing anytime soon, and they are against a backdrop of high inflation.
More families are being dragged into the net, and families already affected by inheritance tax can expect a more significant liability to plan for.
The advice opportunity
When you consider the broader picture of inheritance tax, it only compounds the urgent need for advice.
Inheritance tax is an area families find complex and often lack a good understanding of. There are plenty of myths that persist. It’s not uncommon for clients to assume the only way to plan for inheritance tax is to make gifts, or for clients to believe you can gift the family home and continue to live in it and escape inheritance tax.
There is a clear need that financial advisers can address here and they can help families pass wealth to the next generation.
In doing so, you can also unlock a growth opportunity for your business.
Growing through estate planning
To make the most of the growth opportunity, and to deliver good outcomes for clients, tune in to Growing through estate planning on 26 July at 10am.
This webinar will cover the inheritance tax landscape and why it deserves attention now.
Special guest, Dave Seager, Consulting Adviser to SIFA Professional, will talk through how advisers can build and maintain professional connections when it comes to estate planning.
Also joining is a panel of financial advisers to discuss how they approach estate planning, the challenges they have faced, and how they have overcome them.
Key risks
- The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.
- Tax treatment depends on individual circumstances and could change in the future.
- Tax relief depends on portfolio companies maintaining their qualifying status.
- The shares of unquoted and AIM-listed companies could fall or rise in value more than shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
[1] Source: HM Revenue & Customs, April 2023
Our investments are not suitable for everyone. Any recommendation should be based on a holistic review of your client’s financial situation, objectives and needs. This communication does not constitute advice on investments, legal matters, taxation or any other matters. Investors should read the product brochure before deciding to invest; this can be found at octopusinvestments.com. Personal opinions may change and should not be seen as advice or recommendation. 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. We record telephone calls. Issued: July 2023. CAM013191.
