Business Relief (BR) qualifying Investments
Business Relief (formerly known as Business Property Relief) was introduced by the UK government in 1976 and is designed to incentivise individuals to invest in qualifying UK trading businesses.
Through Business Relief, an appropriate investment can benefit from 100% relief from Inheritance Tax after death if the investment is held for a minimum of 2 years and still held on death.
Which companies qualify for Business Relief?
- Smaller companies that are not listed on the main London Stock Exchange
- Some companies that are listed on the Alternative Investment Market (AIM)
- Businesses considered to be ‘actively trading’, and are therefore not just investment companies. It is worth noting that some businesses, including those that deal in stocks and shares, land or buildings and some specific industries (including resources, mining companies and not-for-profit organisations) do not qualify for Business Relief
BR offers an opportunity for investors to obtain relief from Inheritance Tax after only two years, whilst retaining access to the funds with very little notice periods (in most cases).
Many will invest in Business Relief qualifying companies that trade in renewable energy generation assets, offering Inheritance Tax exemption after just two years.
Attractive subsidies: The UK Government offers subsidies to the renewable energy sector, including Renewable Obligation Certificates, Feed-in-Tariffs and contracts for differences.
Important Information
The content of this webpage should not be construed as financial advice. FS Ventures is a non-advised only service.
The benefit of tax relief depends on the individual circumstances of each investor and is assessed at the point a claim for relief is made.
Tax rules could change in the future and the availability of tax relief is not guaranteed.
Non-advised investments may include possible conflicts of interest. Including where FS Ventures and/or Finance Shop or its employees are invested in selected funds and companies, potentially with significant shareholdings.
Any decision to invest should be made only based on the relevant documentation for each investment. Past performance is not necessarily a guide to future performance. The value of an investment may go down as well as up and investors may not get back the full amount invested.
Investments in small unquoted companies carry a high level of risk. These investments are highly illiquid and as such, there may not be a readily available market to sell such an investment. FS Ventures is targeted at sophisticated investors who understand the risk of investing in early-stage companies and can make their own investment decisions.
The investment opportunities offered on this platform are not covered by the Financial Services Compensation Scheme.
