Deepbridge Estate Planning Service | Investing in renewables

Summary: Deepbridge ESTATE PLANNING Service

The Deepbridge Estate Planning Service is an opportunity which intends for subscribers to obtain relief from Inheritance Tax (‘IHT’) after only two years, by deploying into companies that should qualify for Business Relief that operate, and trade in, renewable energy generation assets.

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.

Subscriptions made by the Deepbridge Estate Planning Service will be illiquid. It may be that your individual circumstances make the Deepbridge Estate Planning Service unsuitable for you. You should seek advice from your Financial Adviser before making any investment decision.

If you are interested in finding out more, please contact us here.

Drimlee hydropower site

RENEWABLE ENERGY

The Service seeks to invest in Trading Companies whose objectives are based on building, acquiring and operating a range of renewable energy generating installations, as a trading activity with a view to generating a profit. The Companies will rely on proven technologies such that the output of electricity should be both stable and relatively predictable, and may benefit from long term price support mechanisms mandated by the UK Government, such as index- linked Renewable Obligation Certificates (ROCs) or Feed-In Tariffs (FiTs) . As it is anticipated that the Companies will also engage in the acquisition and construction of renewable energy projects, they will engage appropriate engineering, procurement and construction contractors. Please see the Product Brochure Document for more information on ROCs and FiTs.

Renewable energy projects could include wind turbines, hydropower, anaerobic digestion and solar power.

The principal selection criterion for the acquisition of projects is the demonstration of generating output for the Subscription timescale, typically 20 years.

INHERITANCE TAX (IHT)

Inheritance Tax is paid on the money and possessions that you leave to your beneficiaries when you die. The first £325,000 of your assets are free from Inheritance Tax (this is often called the ‘nil-rate band’). In 2017, the Government introduced an additional Inheritance Tax allowance, called the residence nil rate band. It started at £100,000 and increased by £25,000 every April until 2020, when it reached £175,000. It applies to the family home in certain circumstances, which include a rule that someone must be leaving a residence to their children or grandchildren. Everything that isn’t covered by these nil-rate bands is taxed at 40%. There are a number of well-established ways to reduce or potentially even eliminate the amount of Inheritance Tax your loved ones are required to pay. Examples include gifts, trusts and making the most of investments that qualify for Business Relief.

Investments in unquoted companies carry high risks and investors could lose all funds invested. Investors should not invest if capital is required in the near term. No established market exists for the trading of shares in private companies, making it difficult to sell shares. The value of tax reliefs depend on personal circumstances and may be subject to change in the future. The availability of tax reliefs depends on the companies invested in maintaining their qualifying status. Please note that HMRC will only assess whether your investment is Business Relief qualifying, and therefore eligible for 100% Inheritance Tax exemption, upon death and not at the time that the investment is made. Therefore, legislation at the time of death will be the basis for assessment for Business Relief eligibility. Past performance is not a guide to the future performance of an investment, and investors are encouraged to take independent legal and financial advice before considering an investment.

Business Relief

Business Relief (formerly Business Property Relief) is an established form of tax relief that gives people an incentive to invest their money into trading businesses. It was introduced in 1976 as a way to ensure that Inheritance Tax wasn’t paid on small businesses. Shares in a Business Relief qualifying business can be left to beneficiaries free from Inheritance Tax, provided they have been owned for at least two years at the time of death. You can read more about Business Relief on the HM Revenue & Customs (HMRC) website at hmrc.gov.uk. To find the relevant pages, just type ‘Business Relief’ in the search box.

DEEPBRIDGE CHARGES

There are no management charges levied on the investor, resulting in 100% allocation of subscription. This ensures 100% tax efﬁciency for investors. Deepbridge fees are paid by the trading companies and are disclosed in the Deepbridge Estate Planning Product Brochure and Terms & Conditions Documents

Please see these documents for full details.

Please note that the Deepbridge Estate Planning Service accepts subscriptions via financial advisers only and does not accept subscriptions from direct clients.