Blackfinch Adapt IHT Service
Business Relief-qualifying investments in as little as two years
What is the Adapt IHT Service?
With more estates paying Inheritance Tax (IHT) every year, finding flexible ways to help clients mitigate an IHT bill, without losing control over their wealth, can be a challenge. Our flagship IHT solution uses Business Relief (BR) for a swifter route to IHT exemption. Clients benefit from owning a portfolio of BR-qualifying investments across seven distinct asset classes: renewable energy, asset-backed lending, property development finance, forestry, leisure, home building and UK private asset opportunities.
Key Benefits
Speed
Investments in the service become up to 100% exempt from IHT after just two years – provided the shares are still held at the time of death.
Value
The service targets a net annual return of 3% - 5%.
There’s no annual management fee and no exit dealing fees in the event an exit is because of death.
Dealing fees will be refunded should an investor die within two years of the BR-qualifying period start date.**
Control
Clients retain access to and control of their wealth. They can take regular payments, or make full or partial withdrawals if their circumstances change.*
Defaqto Diamond Rated Portfolio
We’re pleased to announce that we have received a 5 Star Rating and a 4 Diamond Rating for Unlisted BR Service from Defaqto, the UK's most trusted source of financial product intelligence. To find out more, please get in touch.
* Any withdrawals from the service will no longer qualify for IHT relief and are subject to available liquidity.
** Note: This will apply to the initial, additional investments and exit dealing fee that fall within that two year investment period, not interim withdrawals.
See Our Forestry Strategy in Action
For Blackfinch, forestry investing involves acquiring a portfolio of woodland across the UK, in which the trees will vary in their degree of maturity. The woodlands we look to acquire contain a mixture of tree varieties, all of which are capable of fulfilling the commercial demand for UK timber.
Trees generally grow for 30-40 years before being harvested, so forests that vary in maturity mean a consistent cash flow over different periods. When you harvest, you have an obligation to restock.
In this video of one of our forestry assets, you can see the different stages of growth, harvesting and replanting in action.
One BR-qualifying portfolio with a broad range of investments, including:
Renewable Investments
We invest in the proven technology of solar and wind energy, with over 70 assets nationwide. Investments can deliver stable predictable revenues. Many projects benefit from prior government subsidies. We also now invest in subsidy-free developments, acquire subsidised operational projects and use Power Purchase Agreements with strong counterparts.
Asset-Backed Lending
We provide asset-backed finance for business and property deals typically in the region of £0.5m-£25m. Loans target a conservative loan-to-value ratio and are fully secured. We focus on transactions in established sectors with reputable partners.
Property Development Finance
We work closely with property developers around the UK, providing finance ranging from £1m-£25m. Loans are fully-secured and have a conservative loan to value ratio. Loans are typically for new build projects, redevelopments and major renovation works. We invest across sectors and regions, in everything from eco-flats to care homes.
Forestry
We are growing a portfolio of woodland across the UK, which will vary in their degree of maturity. The woodlands will contain a mixture of tree varieties, all of which will fulfil the commercial demand for UK timber. The woodlands will be responsibly managed, to support regional biodiversity and compliance with Forestry Commission standards for sustainability.
Leisure
An asset class targeting hotel and tourism accommodation projects across the UK. We invest through the build and fit-out phases, converting developments into fully operational, income-generating sites. By owning these tangible assets and partnering with leading operators, this offers a complimentary addition to our group activities.
Home Building
Building on our extensive experience of lending against property developments, we have expanded our property team to include construction specialists who will lead on house building developments around the UK. Once completed, new homes will be sold on to residential buyers.
UK Private Asset Opportunities
We are pursuing a number of higher growth opportunities in UK businesses. Deployment in this asset class will not exceed 5% of the portfolio at any one time. This asset class will explore multiple and varied sectors and industries.
To see the behind the scenes of Renewable Energy, Property and Forestry Investing, take a look at the short videos below:
Adapt IHT Service: Tax Benefits
Investments in the Adapt IHT Service can qualify for up to 100% relief from IHT after just two years, provided it is still held at the time of death.
In contrast, gift and trust arrangements can take up to seven years to achieve full exemption.
Benefits of tax-efficient investments are subject to change and personal circumstances