Called the Prime IHT Portfolio, the fund targets a 4% return per year, after management charges, by investing in unlisted finance companies lending to the UK rural, agricultural and green energy sectors.
The companies in the portfolio are active trading firms and not static assets, like real estate, so they qualify for the BPR scheme, which was first introduced in 1976.
London-based brokerage firm First Equity will be responsible for day-to-day portfolio service management, with affiliated companies of Prestige being responsible for the underlying lending origination, administration and monitoring of lending activity and the production of share prices on a monthly basis.
IHT relief
Under the BPR scheme, investments qualify for 100% relief from inheritance tax (IHT) provided that the shares are held for at least two years, and are still held at the time of the client’s death. The relief only applies to shares which are not listed or traded on a Recognised Investment Exchange.
Craig Reeves, founder of Prestige Asset Distribution, said: “With house prices in the UK continuing to rise, more and more home owners will be caught by inheritance tax. Additionally there are now approximately two million private landlords operating buy to let investment properties.
“Business Property Relief was designed to incentivise investors to play a part in the growth of the UK economy. Our portfolio of lending businesses is doing just that – funding much needed growth in UK agriculture, small business and alternative energy.”
Distribution
The new Prime IHT Portfolio is most suited for UK-domiciled investors, regardless of their residency, and is only being made available via financial advisers.
Reeves noted that, while funds can be withdrawn at any time, it requires two years for any contribution to attract full relief from inheritance tax.
There is a minimum subscription of £10,000 ($14,500, €13,000) to the Prime IHT Portfolio, with a 3% fee for investment dealing and a 1% dealing fee for withdrawals. No dealing fee is charged for sales or reinvestment within a Prime IHT Portfolio.
