• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

Your Account

Brown Dog logo

Giving you what you need to make wise financial decisions, for the life you want now and in the future

  • Home
  • What we do
  • How we do it
  • Why come to us
    • My Mortgage or My Pension?
    • When can I Retire?
    • Will my Partner be alright?
    • I don’t want to leave money to the Tax Man
  • Who we are
  • Blog
    • Brown Dog Videos
  • Contact
  • Brown Dog Financial Planning
  • What we do
    • Brown Dog Videos
  • How we do it
  • Why come to us
  • Who we are
  • Blog
  • Contact
  • Account Login
Jessamy Walker financial planner and financial influencer

Jessamy spotlighted in research in to BPR estate planning

Our founder Jessamy Walker is featured in the Times report for Best Financial Planners in the Country and she is often sought out for her expert opinion and sound insights into lifestyle financial planning. Recently she was approached by Octopus Investments as part of a large research project in to BPR (Business Property Relief) estate planning. The research wanted to ascertain whether BPR was being used to help people reduce the amount of inheritance tax their loved ones will pay, while still being able to sustain a good lifestyle after retirement and being able to take care of themselves.

Inheritance Tax

The amount someone can pass on free from Inheritance Tax (the nil-rate band) has been frozen at £325,000 since 2009. More people than ever are set to face an inheritance tax bill because of rising house prices and stock markets. The amount of inheritance tax collected is predicted to reach £6.9 billion by 2023 –24. That’s an increase of £1.5 billion in just five years.

This means that inheritance can be an issue for even quite modest estates, something many people don’t realise. In fact, many clients are often astonished when they see the Inheritance Tax figure their family are likely to pay. You really don’t need a huge amount of wealth for your family to end up paying a large amount of Inheritance Tax.

Why do people avoid Estate Planning?

Lack of knowledge can be one issue for people avoiding estate planning. However, there are often other reasons as well as the Octopus Investments Research found. These include:

They don’t see the urgency 57%
They don’t want to lose access to their assets 55%
They don’t want to think about their own death 33%
They don’t know they should be doing it 25%

Jessamy explains:

“It is really a control aspect where clients are worried about whether they can afford to give their money away (to Trust or children) and are also increasingly wary of giving gifts.

People are also living longer and that can be a worry as people get concerned they won’t have the finances available be able to look after themselves.  None of us want to be a burden on our children. 

If we can do some planning that means they feel able to live a good life and retain the ability to pay for care or help if they need it, that can be really reassuring and powerful.

That’s where BPR qualifying investments come in.  These are investments that stay in the client’s name rather than gifting money away into a Trust for example.  They are quick to become inheritance tax-exempt, all of which tends to make the conversation a lot easier!“

What are Business Property Investments?

Business Property Relief (BPR) qualifying investments are investments in the following kinds of businesses that carry on a trade rather than investment activities, such as:

  • Shares in qualifying companies not listed on any stock exchange.
  • Shares in qualifying companies listed on the Alternative Investment Market (AIM).
  • An interest in a qualifying business, such as a partnership.

Many business owners are not aware that the shares they hold in their companies are so tax efficient.  When they either sell or close down their companies, often these tax reliefs are lost.

Other benefits to BPR qualifying investments

BPR qualifying investments are especially beneficial for clients who have delayed estate planning until later in life. This is because they only have to be held for just two years before qualifying for nil Inheritance Tax.

Many clients like the idea of BPRs as they often mean that their money is helping small UK businesses grow. It can also mean that they are investing in sustainable businesses, such as solar power.

If you would like to discuss Business Property Relief, Estate Planning or Inheritance Tax, please get in touch with us.

Share this post:

Share on Twitter Share on Facebook Share on LinkedIn Share on E-mail
Previous Post: «Reaching the big 50 can be a financial wake up call Reaching 50 can be a Financial Wake-up Call
Next Post: Investment Update: For Omnis Graphene Clients Bramble sitting at desk»

Footer

Social

  • Facebook
  • LinkedIn
  • Twitter

Contact

2 The Courtyard
Stype
Hungerford RG17 0RE

01488 682890
team@browndogfp.co.uk

 

Navigation

  • Who we are
  • Why come to us
  • What we do
  • How we do it
  • Blog
  • Privacy Policy
  • Your Account

Site Footer

Registered in England. Company registered number 9699107.  Registered address 2 The Courtyard, Stype, Hungerford, RG17 0RE

Brown Dog Financial Planning Limited is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable or available in any other country which may have access to it.

Copyright © 2022 Brown Dog Financial Planning | Website by Callia Web

Copyright © 2022 Brown Dog Financial Planning · All Rights Reserved · Powered by Mai Theme