Selected specialist solution

Carlton Wealth Preservation

A specialist Business Relief investment service for eligible investors considering inheritance-tax planning.

The challenge

The inheritance-tax challenge

Many clients hold estates that exceed the available nil-rate bands, leaving a potential inheritance-tax liability on death. Gifting reduces control and typically requires a longer survival period before it is effective.

For some clients, specialist qualifying investments form part of a wider strategy — retaining ownership of the asset while pursuing a planning objective.

This is a summary for information only. It is not advice, and suitability remains a matter for the adviser and client.

Technical

Understanding Business Relief

Business Relief is a statutory relief that can reduce the value of qualifying business assets for inheritance-tax purposes, provided the relevant statutory conditions are satisfied.

Relief is not automatic and is not guaranteed. It depends upon the nature of the underlying trading activity, the investor's individual circumstances, and the relevant legislation at the time of assessment. HMRC determines eligibility.

Tax rules, rates and reliefs may change, potentially affecting planning already in place.

Timescales

Why two years matters

Business Relief legislation includes a minimum ownership requirement for qualifying assets. Timescales are therefore central to how this type of planning is discussed.

Business Relief – Qualification Period

 

An investment in a business that qualifies for Business Relief (“BR”) may become eligible for inheritance tax relief once the relevant qualifying conditions have been satisfied.

Generally, the investor must have owned the relevant business property for at least two years before Business Relief can apply. Importantly, the two-year ownership period does not in itself guarantee that Business Relief will be available. The investment and underlying business must satisfy the relevant legislative requirements at the time the relief is claimed.

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How it works

How Carlton Wealth works

A high-level outline of the structure. Final detail will follow the approved product documentation.

  1. 01

    Investor, generally via a financial adviser

    Eligibility and suitability assessed by the adviser.

  2. 02

    Subscription into the service

    [Subscription mechanics and documentation to be confirmed.]

  3. 03

    Shares in an unlisted trading company

    The investment involves shares in an unlisted trading company.

  4. 04

    Underlying trading activity

    [Description of the qualifying trading activity to be confirmed.]

  5. 05

    Ongoing monitoring and reporting

    [Reporting frequency and valuation approach to be confirmed.]

Underlying business

The underlying lending business

[Description of the underlying trading business, its activities, borrowers and revenue model to be supplied from approved product documentation.]

[Details of governance, management team and operating history to be supplied.]

Strategy

Investment strategy and liquidity

[Investment strategy, portfolio construction and target exposures to be supplied.]

Liquidity is not guaranteed. The investment involves shares in an unlisted trading company which are not traded on a public market. [Specific liquidity arrangements, notice periods and any withdrawal facility to be confirmed.]

Investors

UK and expatriate investors

UK-resident investors are generally introduced through a financial adviser. [Final eligibility criteria to be supplied.]

Internationally based investors face additional considerations across two or more tax systems. [Availability by jurisdiction and any restrictions to be confirmed.]

Investor eligibility

Availability is restricted to eligible investors. [Final investor eligibility criteria and jurisdictional restrictions to be supplied.]

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Key facts

Investment type
Shares in an unlisted trading company
Business Relief objective
Yes
Minimum investment
To be confirmed
Target return
To be confirmed
Qualifying period
To be confirmed
Liquidity
To be confirmed
Fees
To be confirmed
Risk classification
To be confirmed
Investor eligibility
To be confirmed
Availability by jurisdiction
To be confirmed

Risk warning

Carlton Wealth Preservation is a specialist investment. It is not a savings product and there is no guarantee of return, of Business Relief, or of the return of capital.

  • Capital at risk — investors may not get back the amount invested.
  • The investment involves shares in an unlisted trading company.
  • Business Relief is not guaranteed and depends upon the relevant statutory conditions being satisfied.
  • HMRC determines eligibility for relief based upon circumstances at the relevant time.
  • Tax rules, rates and reliefs may change.
  • Liquidity is not guaranteed and realisation may take time.
  • Valuation of unlisted holdings is inherently less certain than listed investments.
  • Concentration risk within a specialist strategy.

FAQ

Frequently asked questions

Speak to Andrew about Carlton Wealth.

Andrew can explain how the service is structured, what documentation is available, and where the risks sit.

Important information