Inheritance Tax (IHT) Planning Portfolio Service by MichaelChoate


									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
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.
•	 	 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.

•	 	 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
•	 	 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

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
                                                                    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.

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
                                                                     •	 	 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
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
•	 	 tock	selection	–	using	our	research	capability,	market	         - Maximum 5%
   knowledge and experience in identifying companies for
   investment.                                                         -      1.5% payable to Cazenove Capital

•	 	 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 *
•	 	 n	going	monitoring	–	ensuring	that	chosen	companies	
   continue to meet the necessary investment and qualifying          - 1.5%
                                                                     Minimum Fee
•	 	 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

Inheritance Tax (IHT) Planning Portfolio Service

John Hanna           +44 (0)20 7155 5713

Cazenove Capital Management Limited,
12 Moorgate, London EC2R 6DA
Telephone +44 (0)20 7155 5600
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
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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