About Octopus Investments

Archived article

Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.

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This content is provided by Octopus Investments, the sponsor of Wealth Club’s free guide to Inheritance Tax. 

When we launched Octopus in 2000, we wanted to create an investment company that put its customers first. We started by looking at what didn’t work very well, and found ways to do things differently.

Today we have more than 750 employees and £8.6 billion (31 March 2020) in assets under management. We work with thousands of advisers and look after investments for tens of thousands of clients, and we’ve built market-leading positions in tax-efficient investing, smaller company financing, renewable energy and healthcare. We invest in: 

  • Renewable energy facilities that are changing the shape of the UK energy market. 
  • UK smaller companies that create thousands of jobs and generate economic growth. 
  • Companies that address the needs of older people, by building GP surgeries, retirement villages, care homes and hospitals. 

We see a strong business case for each of these sectors, whether that’s providing for an ageing population in need of lifelong care, or the long-term trend towards renewable energy as a viable alternative to fossil fuels, or investing in dynamic, entrepreneurial companies that have a positive effect on the economy, and the people, around them. 

Octopus: the biggest name in inheritance tax investments

Octopus is the market leader in investments that qualify for Business Property Relief (BPR)*, a long-standing relief from inheritance tax. Investors who hold shares in BPR-qualifying investments for two years and continue to hold them until death can pass them on to beneficiaries free from inheritance tax.

Octopus has been managing BPR-qualifying investments since 2005, when we launched the Octopus AIM Inheritance Tax Service, through which investors hold portfolios of shares listed on the Alternative Investment Market (AIM) that are expected to qualify for BPR. In 2007, we launched the Octopus Inheritance Tax Service, which invests into one or more unquoted companies whose shares are expected to qualify for BPR. In 2013 we created the Octopus AIM Inheritance Tax ISA, enabling investors to do inheritance tax planning within their ISA wrapper.

As at 30 March 2020, we manage £3.4 billion of assets in investments expected to qualify for BPR, and have helped more than 3,500 investors pass on more of their wealth to beneficiaries. 

Key risks to keep in mind: 

  • The value of an investment, and any income from it, can fall as well as rise and investors may not get back the full amount they put in.
  • Tax relief depends on the companies we invest in maintaining BPR-qualifying status. 
  • Tax treatment depends on individual circumstances and may change in future.
  • The shares of AIM-listed and unquoted companies could fall or rise in value more than shares listed on the main market of the London Stock Exchange. They may also be harder to sell.

*By funds under management; Tax Efficient Review, April 2020

BPR-qualifying investments are not suitable for everyone. We do not offer investment or tax advice. We recommend investors seek professional advice before deciding to invest. Investors should only subscribe for shares based on information in the relevant product brochure, which can be obtained from octopusinvestments.com.

Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. We record telephone calls. Issued: May 2020. CAM009711.

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.

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