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Take a look at our
Frequently Asked Questions.

What is IHT?

IHT is a tax on the ‘estate’ of someone who has died. The current tax charge is 40% on the value of your estate above £325,000 (known as the 'nil rate band') and is applied to the combined value of your property, cash and other assets after any remaining debts, such as a mortgage, have been paid off.

It has also been confirmed following the Spring Budget that the Inheritance tax nil rate band of £325,000 will be maintained at the current level until April 2026.

There are additional rules which can save on any potential IHT bill, for example, if you leave everything over this limit to your spouse, civil partner, or a charity.

Couples can also transfer any unused ‘nil rate band’ to their surviving partner, effectively doubling the tax free threshold to £650,000.

There are also ways to cut the cost of any potential IHT bill by ‘gifting’ or ‘giving away’ money while you’re still around.

Under Government rules, you can ‘gift’ certain amounts each year without any IHT liability - this is known as your ‘annual exemption.’

You can gift up to £3,000 each tax year and make unlimited gifts of £250 or less per person. With weddings and civil partnerships you can ‘gift’ up to £5,000 to a child, 2,500 to a grandchild, and £1,000 to anyone else. You must gift before the event.

While you can give away larger amounts, say giving your children a lump sum for their first home, you should be aware that this can count towards the value of your estate, and in order to wipe out any potential IHT liability, you’ll need to live for another seven years.

There are also additional tax free allowances if you are passing on the family home. If you leave your home to your children, grandchildren or great-grandchildren, you get an extra tax-free allowance called the ‘Residence Nil Rate Band.”

This is currently £175,000 and can be offset against the value of your home when calculating if any IHT is due. It’s on top of the £325,000 allowance and, like the ‘nil rate band,' if you die and leave everything to your spouse, you pass on your allowance too.

So, if your property is worth at least £350,000 and you’re leaving it to your children, the surviving spouse could leave up to £1 million without paying tax.

What is Business Relief?

Business relief (BR) was introduced by the government in 1976 to allow the owners of small businesses to pass down their assets to the next generation without incurring an IHT liability. In 1996, the scope of business relief was extended to include investors with shares in qualifying businesses.

These shares must be in unlisted UK trading companies, i.e. those not on a main stock exchange. However, most companies offering a BR solution use companies listed on the higher-risk Alternative Investment Market (AIM), or NEX Exchange Growth Market.

Regatta's BR solution provides a secure alternative, using shares in property-backed assets administered by Consortium Investment Management and operated by P1 Capital Ltd. To qualify for IHT exemption, the business relief qualifying shares must be held for two years and at the time of death.

What are the key risks of investing in IHT services?

Investing in estate planning services carries risks and is not suitable for everyone. You should be comfortable with taking on these risks and we recommend that you seek financial advice before you put your money into an estate planning service.

Investment risks

Past performance is not a reliable indicator of future results. We do everything possible to avoid and mitigate any potential downturn.

We are a UK-based company and we only invest in UK property and commercial assets. This removes the risk of currency fluctuations or exchange rate issues. We invest our partners’ money in loans secured on properties that have been analysed in depth by our expert team and all major partners consent to, and are subject to, rigorous due diligence checks. The investment policy is to have a maximum LTV of 80%. We are confident that this is an effective risk-mitigation that significantly reduces any possibility of revenue loss.

BR and IHT relief risks

Business relief is possible if you hold business relief qualifying shares in the service for a minimum of two years and at death. However, business relief is based on personal circumstances, is not guaranteed, and the government could change the rules in the future. Also, the companies within the service could lose their business relief qualifying status if IHT rules change, which could result in an IHT liability on your investment.

Please note this is only a brief overview of the risks involved with investing in IHT services. Please read full details of all the risks in this section before investing.

What are the benefits for investing for IHT relief?

Regatta Financial Solutions provides access to a range of qualifying business activities that offer security and diversification, whilst seeking capital growth that benefits from 100% IHT relief when you hold your investment for at least two years and at death.

The principal activities of the company are providing secured lending to corporate / SME property developers in the residential / social housing sector.

Our services give you control and access to your funds, with the option to make withdrawals.

In addition, you can sell shares in a BR qualifying company and reinvest the proceeds in our services without losing the IHT relief if you do so within three years of the sale. The original and 'replacement' shares must be held for at least two out of the last five years and at the time of death.


If you were to die during the first two years, your investment can be transferred to your spouse or civil partner, which avoids restarting the two-year minimum holding period to qualify for IHT relief.

IHT Considerations?

Investments are intended to be medium to long term, and a typical recommended holding period would be five years plus. For those seeking IHT relief, qualifying investments must be held for at least two years (and held at the date of death) in order to benefit from IHT relief. If you sell or withdraw any of your holdings, you will lose the IHT relief on the amount withdrawn and retain potential IHT relief exemption only on your remaining investment. Please read our investment memorandum.

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