Inheritance and taxes: Investing in Thrive shares

  • Posted: 04 Jun 2018

As Benjamin Franklin famously wrote, ‘in this world nothing can be said to be certain, except death and taxes’.

As an unlisted company, shareholdings in Thrive Renewables qualify for Business Property Relief if held for more than two years. Business Property Relief, or BPR for short, provides relief from Inheritance Tax on the shareholder’s death, making your shareholdings effectively outside of your estate for inheritance tax purposes.

It is also possible to hold Thrive Renewables shares through some full-service SIPP providers. A SIPP, or Self-Invested Personal Pension, is a pension plan that enables the holder to make their own investment decisions. To encourage people to save for their future, investments made via SIPPs, and other pension schemes, have several tax advantages, including tax rebates on contributions made to the pension as well as tax free capital gains and dividends for investments held within it. Higher rate tax payers see the largest tax savings. Both new shares issued when Thrive Renewables raises capital, as well as secondary shares that can be bought via the monthly auction operated by James Sharp (find out more here), can be put into a SIPP. As with all investments, capital is at risk.

In this world nothing can be said to be certain, except death and taxes

Investing in Thrive Renewables via a SIPP is not for everyone. Virtually all SIPP providers require investors to hold listed investments alongside unlisted shares in their SIPPs, and fees for SIPP providers which provide access to unlisted investments, are relatively high. This means that tax benefits only offset costs for investments held for the longer term and for larger investment amounts in the region of £10,000-£30,000 depending on your marginal tax rate. Please also make sure that you are aware of the various pension contribution limits, which can vary depending on your income and other pensions held, and the risks of any investment that you make.

For more information, talk to your SIPP provider, or financial advisor if you have one. Or contact us for a list of full-service SIPP providers who have told us they can accept investments in Thrive Renewables.