Mattioli Woods has teamed up with Stellar Asset Management, a tax-efficient investment provider, to launch Progression.
This will operate by establishing one or more trading companies where the client is the sole shareholder, the firm said in its announcement.
The company’s funds are invested in a range of trading activities that qualify for Business Property Relief (BPR).
Targeting a dividend of 5% per annum after all charges, the service enables clients to receive an income from their BPR qualifying investment or, if not required, profits can be retained within the Mattioli Woods Progression company, officials said.
Murray Smith, sales and marketing director, said: “We have been concerned for some time about the inherent tax risk with many marketed “IHT solutions” that use Business Property Relief. With this in mind, we decided to develop our own bespoke solution which meets both the spirit and the letter of BPR”.
The Progression service is designed, according to Mattioli, to “form an important element in a holistic strategy for mitigating inheritance tax, which might incorporate gifting, trusts and/or life insurance, and where your tax advice would add real value to the client”.
With a minimum investment of £40,000 per company, the service is also available as a corporate investment, which can enable the tax efficient utilisation of surplus cash, with potential benefits in terms of both entrepreneur’s relief and BPR.
David Thurlow, director, said Progression will “complement our existing estate planning provision” and the structure of the service is “tried and tested and truly offers our clients control, excellent portfolio diversification and transparency.”
The service will initially be launched exclusively to existing Mattioli Woods clients, but the aim is to eventually broaden its release to the wider marketplace.