Only available through financial advisers, the CITS works by investing in shares qualifying for Business Property Relief (BPR). If these are bought at least two years before death and still held at the time of death, they are exempt from IHT.
The service invests in shares listed on the Alternative Investment Market (AIM) and ICAP Securities & Derivatives Exchange (ISDX) markets.
“Many households do not understand their exposure to Inheritance Tax, especially in light of the recent reforms we have seen. However, those that do are beginning to undertake more rigorous long-term planning to pass on their wealth to the next generation,” said Sam Barton, Investment Director UK Smaller Companies at CBAM.
“It’s therefore vital that advisers work with clients to help them preserve, grow, and pass on their wealth as best they can.”
CBAM said that over the 12 months to the end of December 2015, the average client portfolio had returned 20.4% compared with returns from the FTSE AIM All Share Index of 6.6% and a total return of 1.0% from the FTSE All Share Index last year.
CBAM said it currently manages over one thousand client portfolios in the service.
