LifeTalk Logo


Over 11,000 Financial Advisers, IFAs, Financial Planners and industry professionals use LifeTalk to share best practice, get help with exams, find Social Media advice and much more. Sign-up FREE here.




HAVE YOUR CAKE & EAT IT: New BPR Investment Launch. Sept 2015

How to shelter cash from IHT, get a return of 4%+ and still have 100% of the capital value available for long-term care costs (or a fancy car, or home improvements etc)

After the recent market volatility there are many investors who have significant amounts of cash who are feeling pleased that they have avoided losing big chunks of their capital. However, these same people are often concerned that whatever happens to markets, they will still lose 40% in Inheritance Tax when they die. 

The options before them all have significant pitfalls:

Gifting the money means that they lose control of it, and cannot access it to cover costs such as property repairs or long-term care. Putting it into some form of Trust is complex, costly and suffers from many of the same issues - such as access and control.

This is why many Advisers are reaching out to invest their client's money into trading company shares that qualify for Business Property Relief (BPR).

After only 2 years, the impact of IHT is removed, and the shares can be sold at any time to allow the investor to get some (or indeed all) of their money back should they need it.

However, as with baking a cake - the final taste depends upon the ingredients used!!

For example - many AIM listed stocks that qualify for BPR have suffered from the same market price fluctuations as the main markets. Added to the volatility in prices, there is no market for selling these shares (Unless a new investor comes along, or the company floats on the main market, which removes the IHT benefit). Access to cash in reality is not quite as easy as the theory suggests.

Another main ingredient is the trade itself - many BPR qualifying shares are invested into trades where the profits are not guaranteed, and there is potential for the business itself to fail. Both directly impact the returns made and access to cash when it is needed.

If clients want to have their 'IHT cake' and 'eat it' - they may well want to invest into a business with a strong positive track record. Which is indeed the case here. 

This business has been generating positive monthly returns for over 6 years - running as an Institutional Investment Fund. These returns are all based on UK lease/loan finance and are not offshore or based on 'high risk' product sales.

The target returns for the BPR Investors is expected to be 4%+ which is supported by 6 years growth in excess of 6%p.a from within the funds themselves. 

Advisers have been asking them to use this business model to create a new BPR Investment for some time - and now it is here. 

The final ingredient is liquidity - if someone wants access to their money, how will the shares be sold to allow them to have cash, when these shares are not listed on the stock market, and there is no secondary market for them?

The clue is in the track record - the trade used in this BPR Investment sits alongside fully Authorised investment funds holding £275m (lease/loan finance) + £75m (working capital credit) + USD $550m (in 4 other investment funds). 

These funds hold large amounts of cash, and are able to swap this for loans/lease finance agreements held within the BPR Investment company - a perfect 'market' allowing clients to access cash as and when it is needed.

So, the BPR Investment has a decent steady rate of return, is IHT free after 2 years, involves no Gifts/Loans/Trusts and offers relatively easy access to money to pay for long-term care (or home improvements).

A bit like having a cake and eating it with a big cherry on the top!

If you have clients who would like to know more, please get in contact so we can invite you to a launch presentation.

We can also offer a full 'FCA Authorised Advice' service should that be preferred – especially if tax advice is needed too. 

Elite Wealth Services can provide you with all the due diligence and advice support documents needed to add this BPR investment to your advice portfolio. Should you need to meet the team in London, we are happy to arrange for a formal presentation from them, so every question can be answered in detail.



For the past 6 years, they have been providing asset management and investment fund services to Institutional clients and offshore Advisers. Their track record has been positive from the outset, and of course they have been subject to detailed due diligence by these Institutions.

Their investments are based on UK loan and lease finance, so this is not an offshore, high-risk business model, but a secure well thought out and profitable business operation.


To give you some of the numbers as of July 2015: 

Loan and Lease Finance        - £275m
Working Capital Facilities       - £75m
4 Investment Funds               - USD$550m


Example Investment Fund Returns Net of Costs: 

2009 – 6.83%
2010 – 6.27%
2011 – 6.32%
2012 – 6.26%
2013 – 6.19%
2014 – 6.14%
2015 – 3.52% so far (July) 


These numbers may not seem very high, but clients with cash are looking for steady and secure growth, without volatility. Also, if income is needed, it is always best to take it from a steady growth fund, rather than something that has high volatility. 

Underpinning their returns with lease/loan finance means that monthly returns are also steady and secure: 

January 2015              + 0.50%
February 2015             + 0.50%
March 2015                 + 0.48%
April 2015                    + 0.48%
May 2015                    + 0.50%
June 2015                   + 0.50%
July 2015                    + 0.50%



We are more than happy to send you links that let you download all the FCA Authorised documents and support materials. Simply email an information request from your business email account, and we will reply immediately.

You are also invited to attend a formal presentation by the Provider – either in their London offices, or if the numbers warrant it… at your own offices. There will even be a fully up to date Allenbridge Report available. 

We have dealt with the Provider for many years and know the amount of due diligence that their Institutional Investors require. Our MD (Paul Stewart) is also Authorised to give investment Advice as an International Consultant working through PIC in Luxembourg. 

Call or email us now… 

Paul Stewart
Elite Wealth Services - Managing Director and International Investment Consultant. 

Mobile: 07786 396722
Landline: 0203 371 9516 or 01722 446 449

     [Sponsored article by Elite Wealth Services]




Author: IFA Life Sponsored Post
Posted: Wednesday, September 02, 2015 | 12:29:18 PM

Bookmark and Share


11 September 2015 | 10:21:29 AM  Stephen Ng wrote:
Really? I'm not sure that IFA Life should be allowing the pomotion of such a scheme. It smacks of aggressive tax avoidance. If its unregulated, why is it on this website?????

Leave a comment

You must be logged in to post a comment
Developed by BouncingFish