What is the Soteria
Business Relief Account?
The Soteria Business Relief Account (SBRA) is a secure, low-cost administration platform for holding Business Relief qualifying assets. It has been designed with UK Inheritance Tax mitigation in mind and helps you and your family plan for the future by utilising Business Relief, an initiative that is made available by HMRC.
“A secure, low cost administration platform for holding Business Relief qualifying assets.”
What is Business Relief?
Business Property Relief (BPR), now known as Business Relief (BR), has been an established part of inheritance tax legislation since 1976 and, as an investment incentive, is relatively straightforward. The main aim of BPR is to encourage people like you to invest in a family-owned business so they could survive as a trading entity, even after their owners passed away, without having to be sold or broken up to pay an inheritance tax liability.
Once you have owned Business Relief qualifying shares for at least two years, they can be passed on to your loved ones free from Inheritance Tax upon your death.
What are Business Relief Qualifying Assets?
Business Relief qualifying assets, at a 100% rate include:
- Shares in an unquoted qualifying company, even a minority holding
- Shares in a qualifying company listed on the Alternative Investment Market (AIM) of the London Stock Exchange
- An unincorporated qualifying trading business, or an interest in one – a partnership, for example.
You should keep in mind that the value of an investment may go down as well as up, and you may not get back what you originally put in. It’s also possible that tax rules may change in the future and that the value of tax relief is dependent upon the amount you invest as well as your personal circumstances.
We do not give financial or tax advice but we are able to answer any product-specific questions and introduce you to professional advisers. Get in touch with us.
How can Soteria Business Relief Account serve you?
As a Soteria Business Relief Account owner you are also named as the sole Beneficiary so that on death, the assets remain in your estate and could not be challenged by HMRC as ever having not been held by the account owner.
And since the assets held within SBRA are Business Relief qualifying asset, assuming that they have all been held for a minimum period of two years when death occurs, they are deemed to be outside of your estate for IHT purposes and qualify for Business Relief at the rate of 100% of their original consideration, or their value on death, whichever is the greater.
Soteria Business Relief Account is for you if you want the money you invest to become inheritance tax-exempt quickly - this investment qualifies for IHT tax exemption after only two years. However, please keep in mind that your investment has the potential to increase, but also decrease in value.
