How To Minimise Inheritance Tax Liability - Plus Loan Latest


 Today we bring news of a service that is not for everyone. It's a way of reducing liability to Inheritance Tax, which kicks in for people leaving estates of £325,000 or more (in fact, up to £450,000 if a house is included in the estate).With UK property prices being near historical highs – although Brexit uncertainty has seen modest declines in many areas in recent months – this tax can affect many. Nevertheless, this service is something to avail yourself of only with the advice of a trusted lawyer or accountant. It's quite straightforward – but professional advice before proceeding is strongly advised.

The Money&Co. Inheritance Tax Service is an innovative approach to mitigating Inheritance Tax through Business Relief.By creating a lending vehicle that holds loans from the Money&Co. platform, investors are not required to pay Inheritance Tax on the value of their portfolio, and additionally benefit from a fixed yield of 8% on the loans, before our fee of 1% per annum. Business Relief gives Inheritance Tax exemption on the value of shares in unquoted companies that have been held for at least 2 years and which are involved in a qualifying trade. Lending is a qualifying trade under Business Relief rules.The service is only available to sophisticated and high-net-worth investors and the minimum investment is £150,000.There's more here.

8% Yield Loan - 77% Subscribed

The latest property-backed £250,000 loan from Seascape is going well. This A-rated tranche yields 8 per cent gross, at a fixed rate for five years. It is now more than 77 per cent subscribed. As is the case with earlier tranches of credit, we have used our best efforts to ensure the truth of the assertions made, but cannot warrant their absolute accuracy. Fuller detail is available to logged-in members.

A Process Guide To Innovative Finance ISA Investment

Money&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee). That figure is the result of almost £15 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders' capital is at risk. Read warnings on site before committing capital.All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.So here's our guide to the process:
  • Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
  • Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
  • Step 3: Buy loans in the loan market. Once you've put cash in your account it will sit there - and it won't earn interest until you've bought a piece of a loan. It's this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans - all loans on the Money&Co. site can be held in an IFISA - and your money will start earning tax-free interest.
The ISA allowance for 2018/19 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We're assuming a 7 per cent return, net of charges and free of tax here.Once you have made your initial commitment, you might then consider diversifying - buying a spread of loans. To do this, you can go into the "loans for sale" market. All loans bought in this market also qualify for IFISA tax benefits.

Risk: Security, Access, Yield

Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here's one of several earlier articles on security, access and yield.

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Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.