Downing Estate Planning Service
Investment Week 'Tax-Efficient Group of the Year 2018'.
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 your capital by focusing on businesses in two distinct sectors, which we believe are lower risk than some other tax-efficient sectors:
- Businesses trading from freehold premises: these businesses provide a level of protection compared to companies with no tangible assets. This is because, in the event of poor trading, there will usually still be value in the freehold property. Examples include hotels, health clubs and care homes.
- Energy businesses: these businesses usually benefit from income that can be forecast with a high degree of certainty, which should help to manage risk. Examples include solar, wind, anaerobic digestion, reserve power, combined heat and power (CHP).
Please find past performance information, including factsheets and the latest available share prices 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: 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 at no extra cost.
- Optional – Life Cover: 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 the following key features:
- Aims to mitigate IHT liability through Business Relief.
- Targets capital growth of 4% p.a. 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).
- Twice monthly access to capital with no penalties on exit (subject to liquidity).
- Shares allotted twice a month.
|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 & Conditions 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 twice 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.