Individuals may wish to participate in commercial trading to generate future income to benefit their families and estates.
Inheritance Tax (IHT) can be saved by trading through the Sovereign Estate business opportunity immediately and substantially by reducing the amount of the Estate chargeable to Inheritance Tax and, after 2 years, by further Business Property Relief. Sovereign Estate shares similarities with our market leading Sovereign Corporate business opportunity but it is designed for individuals rather than limited companies, and is also effective for Limited Life Planning.
The individual commences a Sovereign trade, becoming a sole trader, with the acquisition of film distribution rights financed by a combination of funds from his/her own resources and loan facilities, if required. The individual then sells the film rights on in return for a share of future income from the film.
A Sovereign trade should benefit from Business Property relief of up to 100% and there should be no Inheritance Tax payable on the value of a lifetime transfer of the Sovereign trade or upon the demise of the individual provided that the individual has carried on the Sovereign trade for at least 2 years before the transfer.