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Julian Gibbs

Close Brothers Investment, the market leader in tax-efficient products, has come up with a brilliant idea which avoids inheritance tax immediately for those aged under 77 years old and in good health. For older investors or for those in poor health, inheritance tax is avoided after just two years of qualification.

Furthermore, the investor retains full control of the underlying assets and any income from those assets. The scheme is comparatively simple and the whole of the management is undertaken by Close Brothers.

The investor buys the issued share capital of newly created private limited companies undertaking residential property developments. Because the companies are building houses to sell, they qualify for business property relief, which makes the investment free of inheritance tax after two years.

For those aged under 77 and in good health, a free insurance policy is transacted, which pays out 40 per cent of their investment should they die within two years. So, effectively, the total investment is protected.

Close Property Management finds the developments and manages the sales. It has a proven six-year track record, with £57m currently invested in residential property developments, and has shown returns averaging around 7 per cent a year before taxation.

The minimum investment is only £25,000. So far, the scheme has attracted investments mainly from elderly widows, while some investors in their 50s and 60s have also invested.

The development timeframe is usually one to two years, depending on the time taken to build the new houses. This ingenious scheme is well worth considering for wealthy clients of any age before the Budget on April 17. Generous commission is paid to IFAs.


Standard Life – 5 Year Buy-To-Let Fixed

Fixed term: 5 yearsFixed rate: 6.15%Minimum loan: £40,000Maximum loan: up to 80% of valuation subject to maximum £400,000 on single property, £500,000 on up to 5 rental propertiesIncome multiples: income must equal at least 9% of loan amount, subject to minimum principal income of £20,000 or £30,000 jointArrangement fee: £350 for single mortgage, £500 single […]

Independent view

“If you don&#39t know where you are going, all roads lead there.” So said the Cheshire cat in Alice in Wonderland.At the start of each year, I force myself to carry out a business exercise that has proved to be invaluable while trying to run an IFA firm – a written analysis of where our […]

London Pacific Assurance – Guaranteed Protected Income Bond

Thursday, February 7, 2002.Type: Guaranteed offshore bond.Aim: Income by investing in sterling-denominated corporatebonds.Minimum investment: Lump sum £5,000.Place of registration: Jersey.Investment split: 100 per cent in sterling-denominated corporatebonds.Guarantee: Capital returned in full along with 3 per cent gross a yearregardless of performance of underlying investments.Isa link: No.Charges: Implicit.Commission: Initial 5 per cent.Tel: 01534 607780.


Will there be an exodus of policyholders from Equitable Life now that the life office has won its compromise deal?“Yes, a significant number. I think a number of the bigger group schemes will move away as the overall financial strength of the life office is called into question.” Graham Hume, Beechwood Financial Services“No. I think […]

The fifteen-year itch

By Neil Jones Technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The treatment of non-UK domiciles that are resident in […]


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