For financial advisors, it is investing into this market that has produced two new and exciting services by Christows - one of the UK’s most progressive firms of stockbrokers, portfolio and fund managers.

Inheritance Tax
The Inheritance Tax Relief Portfolio Service provides investors with the potential to obtain 100% relief from Inheritance Tax (IHT) and also to achieve capital growth. It is a means by which individuals can remove assets from their taxable estate and thereby reduce their potential IHT liability without the need for medicals or complicated trusts.
Investors retain both ultimate control and beneficial ownership of the portfolio. Therefore, if circumstances were to change, the investor has access to the portfolio. The Inheritance Tax Relief Portfolio Service utilises the tax advantages of companies qualifying for Business Property Relief (BPR). By investing in qualifying shares in companies listed on the London Stock Exchange Alternative Investment Market (AIM) investors receive the following tax advantages:

■
 100%Relief from IHT when shares are held for two years or more
■ Accelerated Taper Relief reduces Capital Gains Tax rate of a higher rate taxpayer to 10% after two years

Who benefits from an investment in the Inheritance Tax Relief Portfolio Service?
■
 Investors with a potentially large IHT liability.
■ Investors who wish to retain control over and access to their assets.
■ Investors looking for a short IHT mitigation qualification period instead of the normal exempt transfer qualification of seven years. The period is reduced to two years using Business Property Relief.
■ Investors looking for further diversification of their investments utilising companies listed on AIM.
■ Investors whose financial situation allows for high-risk assets to be included in their overall investment portfolio.
■ Trustees in certain circumstances.

The Enterprise Investment Scheme Portfolio Service is a bespoke discretionary managed portfolio of Enterprise Investment Scheme (EIS) qualifying shares, predominantly listed on AIM, that offer significant tax advantages to individual investors as well as exposure to smaller UK companies. Investment is focused more on proven businesses rather than early stage ventures in order to reduce risk. On 6th April 2004, EIS effectively replaces Venture Capital Trust (VCT) as the only Government approved scheme that allows individual investors to defer a Capital Gains Tax liability.

EIS tax Relief

What are the EIS tax reliefs available?
■
 CGT deferral (on an unlimited investment amount).
■ 20% Income Tax on the first £200,000 invested in each tax year.
■ Unlimited 100% IHT Relief after two years due to the investments qualifying as Business Property.
■ No CGT to pay on any profits made in investment sales after three years on the first £200,000 of investment each year, provided companies are trading at the time of share issue: otherwise three years from commencement of trade.
■ Accelerated Taper Relief on an unlimited investment, effectively reducing the CGT rate of a higher rate taxpayer to 10% after two years.
■ Full Loss Relief, deducting any Income Tax Relief already claimed.

Who may benefit from investing in the Enterprise Investment Scheme Portfolio Service?
■
 Investors with CGT liabilities realised within the last three years or who will be realising a capital gain within the next year. CGT already paid can also be reclaimed.
■ Investors who have a portfolio of investments and are looking to further diversify their risk into an asset class - namely UK smaller companies, which has historically been uncorrelated to mature equity markets.
■ Elderly investors who have a CGT liability and wish to maximise their estate�s potential IHT liability.
■ Investors whose financial situation allows for high-risks assets to be included in their overall investment portfolio.

Christows have prepared information packs outlining both of these new services and if you are interested in receiving these then please use the following registration form.