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CTC continues to offer a proven IHT mitigation product

28th May 2008 Print
The Close Trading Companies (CTC) team at Close Investments, believe that investors are continuing to seek proven methods to mitigate their IHT allowance.

Recent launches are offering more complex ways to mitigate an investors IHT liability, but potential investors should be reassured that Close have been managing Close Trading Companies for over twelve years as a simple and proven way to mitigate IHT. During this time more than 80 CTC shareholders have been transferred on death, with 100% Business Property Relief ("BPR") successfully approved by HM Revenue & Customs (Source: Close Investments as at 30 April 2008).

Close Trading Companies enables investors to invest into a new trading company of which they are the sole shareholder. Their company then participates in trading partnerships, jointly with other CTCs. By doing so, under current legislation they will qualify for 100% BPR after just in two years trading, enabling them to fully protect the value of their investments from IHT.

The CTC investors can nominate the team at Close to choose from a variety of qualifying trades currently including Residential and Commercial Property Development, Managed Public Houses, Self Storage and Commercial Forestry.

Robert Meyer, Assistant Director: Specialist Sales, Close Investments Limited, said: "Despite current market volatility, advisers continue to seek ways to mitigate their clients potential IHT liabilities. Close Trading Companies offer a proven method, which is reassuring for clients. No adviser wants to recommend a product for their client which may not achieve its objective and new products to the market may not offer that comfort."