Secure full Inheritance Tax relief after only two years
Full Inheritance Tax (IHT) relief after only two years (when held at death), by investing in shares within an IHT relief qualifying company
Transparent structure with zero fees
No lock in period, no entry fees, and no exit fees. Administered by Consortium Investment Management, an FCA regulated fund manager
Low volatility and high security
Investments are fully backed by legal charges over property and strong commercial assets, and managed in a risk averse manner by an experienced team
Welcome to Regatta
Regatta Financial Solutions works with your financial, legal and tax advisors to provide peace of mind when planning for a growing legacy, free from inheritance tax.
We provide development capital on a short-term basis for property developments and corporate borrowers. Loans are secured against UK residential property and commercial assets, and our strategy ensures a secure return to investors in a tax-efficient structure, in order to mitigate Inheritance Tax (IHT).
Wealth preservation is at the forefront of our investment strategy, offering security and diversification, whilst seeking capital growth. You benefit from 100% inheritance tax relief when you hold your investment for at least two years and at death.
We offer a straightforward approach to delivering investment opportunities that provide strong risk-adjusted returns. We believe in simplicity, conducting transactions using clear and concise language, with honesty and integrity at the heart of our business.
Providing secured lending to corporate and SME property developers in the residential, social housing and commercial sectors, our secured, asset backed lending delivers a robust legacy for future generations, by utlising the current HMRC Business Relief (BR) legislation.
Who can benefit?
We help business owners who wish to maintain or improve tax efficiency, either within their existing business or following the sale of their company. We can help if: a business has excess capital and the owner is concerned that it may not qualify for certain tax reliefs; if the business has realised a capital gain; or if the business has been sold and the previous owner wishes to maintain IHT efficiency.
Our services seek to provide relief from IHT, whilst allowing investors to maintain control over their capital. Backed by Business Relief legislation, HNW / Sophisticated investors / advised clients should be able to pass capital to their beneficiaries with 100% IHT relief, as long as they have held the shares for at least two years at the time of death.
On establishment and throughout the lifetime of a discretionary, trust tax charges may apply. Business Relief qualifying investments can help settlors and trustees to reduce tax charges at each of the four stages where a charge could arise: no entry charge or chargeable lifetime transfer; no charge upon death; no periodic charge; and no exit charge.
Regatta Financial Solutions targets an annual investor return of between 6% and 8% net of fees. We have two core investment options.
By way of capital shares that target a return of 8% per annum, paid on exit, net of costs and fees.
By way of preference shares that provide a 6% per annum dividend paid annually, net of costs and fees.
Key partners & advisors
Ernst & Young
Ernst & Young provide Regatta FS with advice as to our product's qualification for Business Relief
ADMINISTRATOR & REGISTRAR
Consortium Investment Management is a FCA regulated manager and operator of over 70 different investment funds
P1 Capital Partners Ltd.
P1 Capital Partners Limited monitors and controls the security, acting solely in the interests of shareholders. All security is held by the trustee in favour of the shareholders
QB Partners provide independent technical advice as experts in pensions, trusts and estate planning
BDO UK provide tax, audit and assurance services to companies across all sectors and are the appointed auditor for Regatta FS
Regatta FS has consulted extensively with Top 50 UK law firm Freeths as to the eligibility of the IHT Solution for Business Relief
How we work
Demand for UK short-term lending in the property market is strong, and historically funding has been met by traditional banks supported by alternative lenders. Specialist alternative lenders like Regatta Financial Solutions have a robust and streamlined lending process, reaching decisions within days, thus enabling borrowers to proceed quickly and capitalise on financially sound opportunities with good margins.
Unlike most trusts or other IHT strategies, our service ensures you retain control and ownership of your funds, with the option to receive an income.
Central to our business is a disciplined approach to risk management. We originate, administer, and monitor all funding investments, with funds being diversified across the portfolio and secured over all the property and commercial assets.
Our experienced management team are themselves industry experts and we pride ourselves on working alongside professional advisors, accountants, solicitors and financial planners who share our core values of putting the investors interests first, operating in an authentic, fair and transparent way.
The key to our success is working with experienced developers with a proven track record of delivery within a defined criteria.
Borrowers are experienced business owners and professional property developers, and all loans are secured over UK property and commercial assets.
Property lending will generally be in areas with a sustainable property market where there is a fundamental demand for housing. This is currently in and around the South East and Midlands, or areas close to other major cities throughout England.
In the current climate we are highly cautious on £2 million+ homes, or property hotspots that are not supported by our fundamental investment principles.
We typically invest in multi-unit developments with a total sales value of £2 million to £15 million.
We work with other experienced lenders, investing primarily in residential development transactions in our market sector.
Projects of this size can accommodate the best professional advisers and will often give corporate and personal guarantees.
Margins on these developments are typically higher than those of smaller developments, meaning that there is greater protection in the project in the event of a housing market downturn.
Demand in our sector is high, meaning properties sell quicker, thus providing liquidity in this end of the market.
Market conditions do change over time, and we are committed to remaining flexible and open to lending opportunities which present good risk-adjusted returns for investors.
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.
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.
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.
Legacy Planning with Tangible Assets
Richard and Sue are recently retired and after selling their main residence, have an estate worth £1 million.
As a married couple, their nil-rate band (NRB) allowance in respect of IHT amounts to £650,000, meaning that their net estate of £350,000 could leave their family exposed to a potential IHT liability of £140,000. Richard and Sue want to reduce their family’s exposure to IHT and they want to invest in tangible assets that are simple to understand.
Having spoken to their financial adviser, Richard and Sue are keen to invest in Business Relief (BR) qualifying activities to achieve full IHT relief and reduce the liability that their family will have to pay.
Meet Richard and Sue
“We want to protect our estate from inheritance tax to leave a growing legacy for our family.”
After considering many different BR options, their adviser recommended a service offered by Regatta FS which provided diversification from their existing investments and was asset-backed. Investments are made in their name, so they retain ownership of, access to, and control of their capital. They would secure 100% IHT relief for their children after two years, whilst investing in tangible assets seeking to preserve and grow their legacy. They have the option of investing in Income or Growth shares.
Results after two years...
This table illustrates the benefits sought from this solution. Richard and Sue either receive a dividend income of 6% per year, or achieve an investment growth of 8% per year, and their children are able to receive the full value of the protected capital as inheritance, with zero inheritance tax.