Downing Estate Planning Service
You could gain IHT relief after two years by investing in Business Relief (BR) qualifying businesses
IHT relief after two years
The Downing Estate Planning Service (DEPS) aims to provide full IHT relief after two years (if held at the date of death) by giving investors the opportunity to invest in BR-qualifying businesses. The target return is 3%-4.5% p.a. over the medium term (not guaranteed).
The benefits of investing
A fast track to IHT relief after two years while retaining access to your funds if needed in the future
Access your money
To give you the flexibility you need, we give you access to your investment up to twice a month with no exit fees. This is subject to liquidity.
Diversification
State your preference on how you would like your money to be invested between the two main strategies: asset-backed trading business (such as care homes and specialist education schools) and renewable energy and infrastructure.
Wealth Guard Cover
At no extra cost, your investment is insured from falls of up to 20% of your net initial investment, at the date of death – subject to conditions.
The risks of investing
Before you put money into an investment it is essential that you consider the risks involved. For the full list, please refer to the brochure and terms and conditions.
Tax reliefs
IHT tax reliefs are not guaranteed, subject to change, and only apply if you hold your shares for a minimum of two years and at death.
Performance
Your capital is a risk. Past performance of the portfolio is not a reliable indicator of future results. Investing in smaller companies generally carries higher risk.
Liquidity
There could be a delay in returning your cash in the event of significant demand for withdrawals.
Request more information
If you would like to view and download our Downing Estate Planning Service brochure and application form(s) please request below. We recommend you seek financial advice before investing.
Essential reading
It's really important that you read these key documents, paying particular attention to the risk warnings. We recommend that you seek financial advice before investing.
Terms and conditions
Life cover booklet
Target market
SDR: Consumer Facing Disclosure
We will invest your money in companies that we believe can meet these objectives and our expectations for performance:
- Have a strategy to deliver steady, modest returns to investors, with a target return of 3.0% to 4.5% p.a. in the medium term (net of all Downing fees)
- We believe will qualify for business relief, which will enable investors to benefit from inheritance tax relief, if their investment is held for at least two years and at the date of death
- Benefit from a diversified portfolio of underlying businesses – including (but not limited to) diversity across sector, technology, geography, business stage and time horizon for potential exits
The minimum individual subscription through the service is £25,000 (no maximum).
Access your investment up to twice a month with no exit fees.
Subject to liquidity.
Wealth Guard Cover: included as standard if you're under the age of 90, this policy protects your initial net investment of a loss in value of up to 20% (conditions apply).
Life cover: optional, covers 40% of your original gross investment (before charges) if you die within the first two years.
This is subject to the conditions summarised in the Life Cover Booklet and in the Terms & Conditions document.
Please see the brochure and terms and conditions for more information on all charges and costs. The below charges are for advised investors:
Initial charge: 2%
Annual management charge: up to 0.5% + VAT per annum
Service charge: 1.5% + VAT per annum
Frequently Asked Questions
Below are a series of questions to help you to understand our product offering. If you have any additional questions, please contact us.
Target return: 3%-4.5% p.a. over the medium term (not guaranteed).
Choice of portfolios: you can state a preference on where you would like to invest your money between the two key strategies stated below:
- Renewable energy and infrastructure: businesses in the energy generation and infrastructure sector. This includes solar, wind, hydro, battery storage and reserve power.
- Asset-backed trading businesses: revenue-generating businesses with tangible assets, such as care homes and property development.
Control your capital: access your investment up to twice a month with no penalty. This is subject to liquidity.
Income options: opt to sell shares to receive payment distributions monthly, quarterly, half-yearly or annually.
Wealth Guard Cover: included as standard if you're under the age of 90, this policy protects your initial net investment of a loss in value of up to 20% (conditions apply).
Life cover: optional and at an additional cost, covers 40% of your original gross investment (before charges) if you die within the first two years (conditions apply).
Minimum investment: £25,000 (no maximum).
Investments in estate planning solutions are not suitable for everyone, so we recommend seeking financial advice before investing.
As with all investments, there are a number of risks you should be aware of before you invest. The value of your DEPS portfolio can go up and down so your capital is at risk.
IHT tax reliefs are not guaranteed, subject to change, and only apply if you hold your shares for a minimum of two years and at death.
BR-qualifying companies may lose their status if BR rules change, which means IHT relief may no longer apply to the money you have invested in that company.
The past performance of the DEPS portfolio is not a reliable indicator of future results. Investing in smaller companies generally carries higher risk because their shares are less liquid and harder to sell than those in blue chip companies on a main stock exchange.
There is no guarantee that the Wealth Guard Cover will continue after two years, and if the conditions are not met in full then the cover will not pay out.
The Life Cover policy is subject to conditions. If the conditions are not met in full then the policy will not pay out.
Please ensure that you read the terms and conditions. Please note this is only a brief overview of the risks involved with investing in DEPS.
Please read full details of all the risks within the brochure and terms and conditions.
Wealth Guard Cover: included as standard and if you're less than 90 years old, this policy is designed to reduce the impact of any loss during a minimum of the first two years (conditions apply).
Wealth Guard Cover covers a loss in the value of up to 20% of your initial net investment - with no medical questionnaires or exclusions for pre-existing conditions and at no extra cost. The policy is renewable (by the insurer) each year although we cannot guarantee it will remain in place after the first two years.
The maximum benefit is £100,000 per investor (equivalent to an investment of £500,000) across all Downing products.
Life Cover: This is optional for an additional fee and is available to investors under the age of 85 at the date shares are acquired.
It covers 40% of your original gross investment upon death in the first two years and runs alongside the Wealth Guard Cover.
Please note, the Life Cover policy is subject to conditions and if they are not met the policy will not pay out.
The maximum benefit is £100,000 per investor (equivalent to an investment of £250,000).
Please see our terms and conditions for more details on the costs associated with the service. The below charges are for advised clients.
Annual management charge: up to 0.5% + VAT per annum
Subject to a minimum investor return of 3%. If investor returns are over 3%, the charge will apply on a sliding scale – up to a maximum of 0.5%.
Service charge: 1.5% + VAT per annum
This covers the costs of running the underlying companies (eg. administration, accounting and other services that Downing provides).
Life Cover charge (optional): 2.25% p.a. + VAT per annum
Once you have invested in the Downing Estate Planning Service we'll send you a letter confirming that we've received your application and allotted your shares.
Share allotments happen twice a month.
If you have selected the optional Life Cover policy, we will send you an insurance certificate.
Provided you give us notice, you can access your portfolio twice a month with no charges or penalties.
If you elect to receive regular distributions on a monthly, quarterly, half-yearly or annual basis, these will be paid by a sale of shares from your portfolio. Alternatively, you can elect for any returns generated to remain in the service.
Note, all distributions are subject to liquidity.
We will provide you with quarterly valuation statements to let you know how your investment is doing.
Downing aims to preserve and enhance returns for our investors. Integrating material sustainability factors to investment activities and active ownership contribute to achieving this.
We're here to help
If you are a financial adviser, or discretionary fund manager call 020 7630 3319 or email us at sales@downing.co.uk
If you are a private investor call 020 7416 7780 or email customer@downing.co.uk