Interest Grows in Heritage IHT

The chief executive of Puma Investments, a division of Shore Capital, also said the Heritage IHT product was on the hunt for more potential transactions to expand its portfolio.

Mr Kaye said the vehicle had been attracting more interest from advisers as they were looking to help clients mitigate tax while remaining invested.

 “Traditionally, advisers have used various gifts and trusts to help their clients mitigate their tax bills on death,” he said, “but this has not allowed the investor flexibility over their money or control.

“Increasingly, advisers are finding that clients want to remain invested in a product that can help provide limited downside while preserving the wealth for future generations.”

The Heritage IHT strategy is to lend money to businesses against secured assets, such as pubs, care homes or property developments. This secured financing helps UK developers and builders provide accommodation or services, while aiming for a target of 3 per cent return per annum.

After two years, investors qualify for full IHT relief at 40 per cent.

In the past year, the team reviewed £400m worth of lending opportunities, but only conducted £20m of transactions.

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