Downing Estate Planning Service
Full IHT relief on subscription after only two years by investing in a portfolio of businesses trading from freehold premises and/or energy businesses through investments that should qualify for Business Relief. Please read the key risks below.
The Service aims to preserve investors' capital by focusing on businesses in two distinct sectors, which we believe are lower risk than some other tax efficient sectors:
Example clients that could benefit from an estate planning solution such as DEPS
1From the date shares are acquired, shares must be held for at least two years and at death.
2BPR Industry Report 2016, Intelligent Partnership.
We know inheritance tax can be a difficult subject for your clients to understand, so we have created this IHT calculator to provide you with an estimate on the tax that may be due on your client’s estate.
For past performance information, including Factsheets and the latest available share prices, please click here. Please remember, past performance is not a reliable indicator of future results.
Two ways to help protect your assets
We understand that when it comes to estate planning, preserving your assets for your beneficiaries is key. That’s why we’ve arranged two group policies:
- Standard – Downside Protection Cover: this policy is designed to reduce the impact of loss to you during the first two years before the investment qualifies for IHT relief. In the event of death under the age of 90, it covers a loss in value of up to 20% on your net initial investment – with no medical questionnaires or exclusions for pre-existing conditions, and at no extra cost.
- Optional – Life Cover: this policy is designed to mitigate the effect of IHT for the first two years before IHT relief begins for those under the age of 85 (from the date shares are acquired). It covers 40% on the original gross investment (which would be payable to HMRC) upon death within the first two years, subject to conditions. This is an option and is subject to higher fees as set out in the Product Literature.
The Service has been designed with the following key features:
- Take advantage of the chance to mitigate IHT liability through Business Relief
- Target capital growth of 4% per annum over the medium term (this is a target and is not guaranteed)
- Option to receive distributions (paid quarterly, six-monthly or annually at a level set by the investor)
- Monthly access to capital with no penalties on exit (subject to liquidity)
|Minimum subscription: £25,000||Maximum subscription: no maximum|
Method of payment for application
Payments for applications can be made by cheque, made payable to:
Thompson Taraz Downing Client A/C re Downing Estate Planning, or by electronic bank transfer using the payment details below.
How to apply
Please first read the Brochure and Terms before completing an Application Form.
The key risks are set out below. Please read the Brochure for a full list of risk factors:
- Capital is at risk: the value of investments and the income derived from them may go down as well as up and investors may not get back the full amount invested.
- Tax reliefs are not guaranteed: the IHT relief is described in accordance with our interpretation of current legislation, rules and practice, which are subject to change in the future, personal circumstances and the Service’s underlying investments continuing to undertake IHT-qualifying trades.
- The Life Cover policy is subject to conditions: if the conditions are not met in full then the policy will not pay out. The full terms of the policy should be read carefully, including the exclusions in the Terms & Conditions document before applying to ensure eligibility.
- Downside Protection Cover risk: the insurance policy is a Downing group policy, paid for by Downing. It is renewable on 30 September each year and there is no guarantee that it will remain in place throughout the term of an investor's investment.
- You cannot rely on past performance: past performance is not a guide to future performance and there is no guarantee that the Service’s objectives will be met.
- Your shares may be difficult to sell: although the Service will seek to provide access to funds on a monthly basis, in the event of substantial demand, there could be a delay because the investments made through the Service will be in unquoted companies, the shares of which are less liquid than listed shares. Such investments are also considered to be higher risk than securities listed on the London Stock Exchange.
- Asset-backed specific risks: in the event of a failure of an asset-backed business, the value of the freehold property contained within a company may be worth significantly less than cost, particularly where it is considered by potential purchasers that the trade previously undertaken is no longer viable or that alternative uses for the property are limited or unfeasible.
- Energy specific risks: changes to legislation regarding subsidies for energy businesses could reduce the revenue streams of those IHT Companies and, therefore, the returns to investors.
Please contact us if you wish to receive any of these documents in a format that is accessible to clients who are visually impaired.