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How To Incorporate Sustainability In Estate Planning

International Adviser recently spoke with Andrew Aldridge, Partner & Head of Marketing at Deepbridge Capital to highlight Deepbridge's Estate Planning Service and how renewable energy was found to be particularly suitable.

Andrew said there are two main reasons for this, tax reliefs and physical assets.

First, renewable energy businesses are trading companies, “which is very important for business relief and business property relief qualifications”, Andrew commented.

This is because in order to get these types of relief, companies have to be “doing, selling or making something”, he said, “they have to be physically trading” and, as far as renewable energy goes, “a wind turbine turns and creates electricity, which is then sold to the grid”. “It’s the very essence of a trading company”“It ticks all the boxes as far as HMRC is concerned from the relief perspective,” Aldridge added.

The second reason to invest in renewable energy is that clients are investing in assets that are “heavily government subsidised”, meaning they have “good regular income that you can predict relatively in advance”.

This is also true, Aldridge said, because there are “wind records for the past 60 years that you can look at and they are a fairly straightforward metric” to base calculations on.

“So, for example, our wind turbines currently have government subsidies against them until 2037 and they are index-linked. So, obviously, in a high inflation world, having an index-linked subsidy against your assets smooths that inflation curve.”

The Deepbridge Estate Planning Service is specifically designed for individuals whose estate is expected to be valued significantly in excess of the Nil Rate Band for Inheritance Tax, currently £325,000. If you are interested in finding out more, please contact us here.

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