The objective of this service is to mitigate inheritance tax liabilities (above the tax-free threshold) after two years by investing in Business Relief (BR) qualifying trades, through unquoted company shares, whilst providing competitive returns with a balance of capital preservation through strong trades which are asset-backed or benefit from secure and predictable revenue streams.
The minimum amount for withdrawals is £3,000. The Blackfinch IHT Portfolio is intended as a long-term investment. Investments in qualifying companies must be held for at least two years and at the date of death to benefit from the IHT relief. Investments made by Blackfinch IHT Portfolios, are in unquoted companies and therefore are not readily realisable, unlike companies listed on the London Stock Exchange.
Blackfinch should be able to redeem an investment within four weeks, but if it is necessary to institute a share buyback because of unusually large withdrawals then the process could take significantly longer.
Any withdrawal, whether regular, one-off or to facilitate adviser charging or commission payments, will reduce the value of the portfolio, erode future returns and such withdrawals will cease to qualify for BR.
The investment world is our natural habitat. With a 25-year heritage, Blackfinch brings significant knowledge and expertise. Whatever the economic climate, we work to ensure that our products always meet our customer’s needs. We achieve this through continually adapting to change, from market shifts to new regulation. In this way, clients can take advantage of highly evolved investment solutions.
As a testament to our work, Blackfinch continues to grow, currently with over £300 million under management and in administration, entrusted to us by our customers.
Fee type | Fees charged to Investor (including VAT) | Fees charged to Investee Companies (including VAT) |
---|---|---|
Initial Fee | 2.00% (1.00% for Kuber investors) | n/a |
Annual Management Fee | 0.60% taken after the target pa 4% or 6% has been achieved | 1.80% |
Performance Fee | n/a | n/a |
Other Fee Information | 1.00% - dealing fee (all investments and withdrawals | n/a |
Kuber investors receive a reduction of 1% on the initial fee.
Discretionary Portfolio Management Service
BR
Capital Preservation Portfolio: 4% per annum
Growth Portfolio: 6% per annumProperty and Lending
Energy3 investee companies
Custodian: Blackfinch Investments Limited
Nominee: Blackfinch Nominees Limited
An investor qualifies as an High Net Worth investor if they have
(a) An annual income to the value of £100,000 or more;
(b) Net assets to the value of £250,000 or more. Net assets for these purposes do not include:
(i) the property which is their primary residence or any loan secured on that residence;
(ii) any rights under a qualifying contract of insurance within the meaning of the Financial
Services and Markets Act 2000 (Regulated Activities) Order 2001; or
(iii) any benefits (in the form of pensions or otherwise) which are payable on the termination of their service or death or retirement and to which they are or (or their dependants are), or may be, entitled.
An investor qualifies as ar Self-Certified Sophisticated Investor if at least one of the following applies:
a) they are a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below
b) they have made more than one investment in an unlisted company in the two years prior to the date below
c) they are working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium sized enterprises
d) they are currently, or have been in the two years prior to the date, below a director of a company with an annual turnover of at least £1 million