The Freyr Regatta Estate Planning Service
We select companies that we expect to qualify for Business Relief (BR), a government-approved relief from inheritance tax. Provided the investment has been held for at least two years at the time of death, it can be left to their beneficiaries with relief from inheritance tax.
The Freyr Estate Planning Service’s key features:
- Invests in one or more unquoted British companies expected to qualify for Business Relief
- Investee companies primarily engage in secured lending to businesses
Reasons to consider FREPS
Target a steady return
The companies the Service invests in target 6.5% growth per annum over the long term for investors.
Flexible access
Built-in flexibility, so you can top up your investment or set up ad hoc or regular withdrawals at any time, if your circumstances change.
Two-year qualifying period
Investments should become exempt from inheritance tax after being held for two years, allowing them to pass on with relief from inheritance tax upon death.
What makes FREPS different
A Secured lending strategy
The Service is differentiated within the BR qualifying peer group by focusing on secured lending only.
Alignment of interests
We’ll only take our annual management charge if the growth target is met.
Strong governance
The companies that we invest in have independent boards and auditors.
A transparent investment
We provide investors and advisers access to monthly valuations as well as quarterly investor updates.
Fees
| Initial: | Initial fee | 1% | of the application amount |
| Ongoing | Annual management fee | 0.5% (plus VAT) | of the Net Asset Value of each portfolio company |
| Dealing | 1% | of the application amount, net of any Financial Adviser and initial fee. And on the sale of shares in portfolio companies. | |
| Performance fee | None |
The private trading companies are responsible for their operating costs including audit, directors’ and administration fees. Freyr Investments may receive transaction, administration, monitoring and business support fees from trading companies. trading companies.
Risks to consider
An investment in FREPS carries risk and may not be suitable for all investors. Investors can only invest in the Service through a financial adviser who has assessed that an investment in FREPS is suitable.
Past performance: Past performance is no indication of future results and share prices and their values can go down as well as up.
Tax reliefs are not guaranteed: Tax reliefs depend on individuals’ personal circumstances and minimum holding periods and may be subject to change.
Capital at risk: An investment in smaller companies is likely to be higher risk than other investments. Investors’ capital may be at risk and investors may get back less than their original investment.
Long-term investment: An investment in FREPS should be considered a long-term investment.
Potentially illiquid investment: Private trading company shares are illiquid. They are characterised by significant spreads and low trading volumes. It may prove difficult for investors to realise immediately or in full proceeds from the sale of such shares.
BR is assessed on a case-by-case basis: We cannot guarantee that the investments we make will qualify for BR in every case in the future. HMRC will only conduct a BR assessment after the death of an investor, to confirm whether the companies invested in qualify for BR at that time.
