Inheritance Tax (IHT) Planning Portfolio Service Reasons to consider this Service RISKS The IHT Planning Portfolio Service provides a straightforward Portfolios are high risk due to the necessity of only accessing solution to mitigating inheritance tax. Each client has an shares traded on AIM or PLUS . The value of the shares may individual portfolio invested in a range of qualifying AIM and go down as well as up and investors may not get back the full PLUS Market companies. amount invested. AIM and PLUS market shares are classed as a high risk/ SIMPLE long-term investment. The investments are only suitable for • No complicated or expensive legal or trust structures. investors with financial security independent of any investment made. FLEXIBLE Cazenove Capital does not guarantee that all investments • Clients have access to their capital and income at all times. made will qualify for the tax relief and exemptions. Inheritance Tax and Capital Gains rules may change in the TAX-EFFICIENT future. Q • ualifying equities, if held in your own name for two years, If qualifying shares are disposed of prior to the expiry of the attract exemption from 40% IHT. two year period this will cause them to be disqualified for • nvesting in qualifying AIM & PLUS listed equities offers an I 100% IHT relief. opportunity to pass wealth on to the next generation more If shares are disposed of above their original cost, this may efficiently. lead to a liability to Capital Gains Tax. INVESTMENT O • ur aim is to sustain capital value and achieve long term growth by investing in a diverse selection of robust, predominantly AIM-listed, qualifying companies, with attractive business models or established track records Who can benefit from IHT relief? across a range of sectors. Estates and beneficiaries who are likely to be assessed for S • maller companies have the potential to generate superior UK IHT. total returns over the longer term as they offer exposure to less developed, faster growing or niche markets, relative Example IHT to large cap indices, which tend to be dominated by more On the death of the holder, shares in a qualifying company held mature industries. This is supported by the HGSC (Hoare for more than 2 years prior to death for a value of, for example, Govett Smaller Companies) Index, which has outperformed £100,000 are exempt from IHT: the FTSE All-Share Index by 3.4% p.a. over the 50-year period from 1955 to 2007. Qualifying company £ Value on death 100,000 IHT 0 Resultant value 100,000 Non-qualifying company £ Value on death 100,000 IHT 40,000 Resultant value 60,000 3 Inheritance Tax (IHT) Planning Portfolio Service Inheritance Tax (IHT) Planning Portfolio Service Stock Selection Team Biographies Stock selection is the responsibility of Paul Marriage, a Stock Selection member of the Cazenove Capital Pan-European equity team focusing on the UK Smaller Companies Sector. The team PAUL MARRIAGE joined Cazenove Capital in follows a pragmatic ‘bottom-up’ approach to stock picking 2005. He is a member of the pan-European whereby each stock has clear fundamental price drivers, equity team and Manager of the Cazenove UK supported by a compelling valuation case. They carry out Smaller Companies Fund. Paul joined from in-depth research and regular meetings with company Insight Investment where he was head of UK management forms a key part of their process. Small Cap investments valued at £750 million. Prior to this, he was an analyst at GH Asset Management. He is a member of The ‘model portfolio’ consists of a list of recommended stocks ASIP and has 10 years of investment experience. from which the portfolio manager can select. The IHT Planning Team meets monthly to monitor the positions and review stock Portfolio Management, Implementation and recommendations. Client Servicing The portfolio management, implementation and client servicing JOHN HANNA rejoined Cazenove Capital in is the responsibility of specialist portfolio managers within our August 2008, having previously worked here from private client teams. 2000 to 2002. In the interim, he spent five and half years at Merrill Lynch working with private clients on discretionary and advisory mandates and a year with Barclays Wealth. John is a CFA charterholder. 4 Inheritance Tax (IHT) Planning Portfolio Service Inheritance Tax (IHT) Planning Portfolio Service Alternative Investment Market Communication and reporting AIM is the leading market for smaller, growing companies Clients receive: from all over the world. The AIM market was launched by A • n immediate confirmation of receipt of funds, showing the London Stock Exchange in 1995, since when more than 2,500 amount available for investment after the deduction of fees. companies have been admitted. A key to the successful establishment of AIM is that it offers all the benefits of trading A • half-yearly valuation report (with a copy for other advisers if on the main market but within a regulatory framework that is required) showing the up-to-date value at a fixed date. designed for smaller companies. A • comprehensive nominee and custodian service provided by This implies that there is a higher level of investment risk, as our own nominees. companies listed on AIM do not need such a long financial O • ngoing monitoring of the selected companies. track record. Nevertheless there are many interesting O • ur assistance in providing tax certificates where relevant, investment opportunities that offer exposure to premium growth although this is ultimately the responsibility of the selected areas and some long-established companies. There are now company. more companies listing on AIM than on the main market. As a result AIM represents a very wide range of company sectors. The Service Charges Cazenove Capital Management acts on each client’s behalf for: Initial Charges S • tock selection – using our research capability, market - Maximum 5% knowledge and experience in identifying companies for investment. - 1.5% payable to Cazenove Capital Q • ualifying status – ensuring that suitable stocks meet the - Up to 3.5% may be payable to advisors as commission qualifying criteria at the time of purchase. Annual Management Fee * O • n going monitoring – ensuring that chosen companies continue to meet the necessary investment and qualifying - 1.5% standards. Minimum Fee D • iscretionary portfolio management – managing the portfolio - The minimum annual fee is £1,500 on each client’s behalf. * Subject to VAT The minimum initial investment is £100,000 5 Inheritance Tax (IHT) Planning Portfolio Service CONTACT John Hanna +44 (0)20 7155 5713 firstname.lastname@example.org Cazenove Capital Management Limited, 12 Moorgate, London EC2R 6DA Telephone +44 (0)20 7155 5600 www.cazenovecapital.com Registered Ofﬁce 12 Moorgate London EC2R 6DA Registered in England No 2134680 Regulatory Information and Risk Warnings AIM & PLUS Market shares are classed as a high risk/long-term investment. The investments are only suitable for investors with financial security independent of any investment made. The value of shares purchased may go down as well as up and investors may not get back the full amount invested. Investments may be difficult to realise. Potential investors should discuss financial arrangements with their own tax advisers before applying. Cazenove Capital does not guarantee that all investments made will qualify for the tax reliefs and exemptions. In order to maximise the performance of the portfolios, Cazenove Capital may use its discretion to dispose of investments before the required holding period has been met. In such cases, the initial period to qualify for 100% relief from IHT may be extended. However, we will only dispose of investments where we believe, having taken the tax considerations into account, the financial benefits from selling outweigh those gained from holding on to the investments. We will seek to reinvest the proceeds into qualifying shares as soon as possible. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. The levels and bases of, and reliefs from, taxation may change. You should obtain professional advice on taxation where appropriate before proceeding with any investment. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. It is issued by Cazenove Capital Management Limited, a firm authorised and regulated by the Financial Services Authority. If you proceed with this service you will be asked to sign the full Terms and Conditions applicable, and these will be provided to you separately.
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