What Is Business Relief by Zenzic Estate Planning Service (ZEPS)
ZEPS is a Business Relief (“BR”) estate planning service. A Business Relief estate planning service gives investors access to unquoted companies that are expected to qualify for business relief which is an important relief used in valuing an estate for inheritance tax planning (IHT).
An estate planning service works by allowing BR qualifying assets to be transferred from an individual’s estate to their beneficiaries free from inheritance tax. Investors can access BR-qualifying companies through a portfolio management structure, whereby a specialist BR manager chooses the companies on the investor’s behalf. The first £1 million of BR-qualifying assets receive 100% IHT relief, reducing to 50% beyond this threshold. The shares must have been held for least two years prior to death to qualify for BR and be exempt from IHT.
Originally introduced to help family-run businesses pass from generation to generation, BR has expanded into a vital funding incentive for UK trading businesses and infrastructure. Today, BR plays an important role in attracting capital to a wide range of UK infrastructure assets, including commercial property, and commercial lending. The recent Autumn Budget proposed many changes to the taxation regime, yet the qualifying rules for BR remained mainly unchanged, which some commentators interpreted as Government support for this tax relief.
Given the nature of unquoted trading businesses, investors should be aware of the risks of using BR estate planning services, including potential liquidity challenges, market fluctuations, and regulatory changes that could impact their investment.