By investing in a diversified portfolio of shares listed on the Alternative Investment Market (AIM), the service will provide exemption from IHT through Business Property Relief (BPR), a Sanlam UK spokesperson said.
Sanlam UK is an international financial services group that is listed on the Johannesburg Stock Exchange and has a market capitalisation of £12.1bn.
The diversified portfolio will be made up of 25 to 45 shares across a range of industries. Investors will be able to hold the shares in an individual savings account (ISA) or a self-invested personal pension (SIPP), which they will be able to add or withdraw money from at any time.
“Each stock will go through an extensive screening process to try to ensure qualification for BPR as well as reassuring investors of the potential for long-term growth,” the spokesperson said.
Last week, the UK Government revealed it had hauled in £5.2bn ($7.2bn, €5.9bn) of inheritance tax receipts during the 2017/18 tax year, a figure 8% higher than the previous year.
The AIM
The AIM is part of the London Stock Exchange and has been designed for smaller companies seeking expansion. Since its inception in 1995 more than 3,000 firms have listed on the AIM and raised over £60bn (€68.2bn, $82.7bn).
While investing in smaller companies can offer attractive valuations, diversification and the potential for higher returns, it is often perceived as higher risk. The service bears an initial charge of 1.5% plus an annual management fee of 2% plus VAT is levied on the portfolio.
Charlie Parker, head of portfolio management at Sanlam UK said: “With the launch of this new service, Sanlam UK reinforces its commitment to providing the best wealth and inheritance management strategies and solutions possible to our clients.
“A forward-looking approach is vital when it comes to protecting and planning your family’s wealth for future generations. This IHT service offers clients a straightforward, effective and flexible way to accrue and pass on wealth,” Parker said.
