Onside Issue 3 - Summer 2015 - 19
ONSIDE / BPR
I am getting the impression that BPR is a closely
guarded secret, would that be fair?
Well it has been used quite widely for a number of years
but I think the rapidly growing number of families who
are now above the IHT threshold (currently £325,000)
has brought IHT planning very much to the forefront and
advisers are becoming very comfortable with where BPR
fits for their clients. The industry experts predict that 1 in
10 families will have an IHT exposure by 2018 which gives
an indication of its relevance. But generally, BPR should be
seen as complementary to other strategies not as a substitute.
For those who think using BPR may be an
attractive option, what is the way forward?
What then is Seneca's approach to managing
the investment safely and wisely?
Our belief is that most people who have worked hard to
accumulate their wealth throughout their lives don't want to
see it dissipate under an aggressive investment strategy. For
that reason, we see capital preservation as the overriding
aim rather than chasing big returns; we target a return of
4% per annum but the key is ensuring capital is protected
rather than chasing higher return. We achieve that through
a very conservative approach to lending on a fully secured
basis across a diverse range of borrowers where we can
clearly see our repayment source. Essentially the loans
are short and medium term, tightly controlled within a
strict Credit Policy and Risk Management framework and
managed by a senior team with vast experience in credit
and credit underwriting. We also have a dedicated banking
division and debt advisory arm within the Seneca empire,
advising on over £2 billion of complex debt issues affecting
SME's and so it is an area of strength for us.
So why does this appeal to investors?
Most good quality advisers are very familiar and
knowledgeable about how BPR works and have access to
excellent research material about the various BPR products
in the market place. But IHT planning is a complex area
and we would always recommend advice be sought from a
suitably qualified firm.
Ian Battersby
ian.battersby@senecapartners.co.uk
01942 271 746
Ian Battersby is responsible for Seneca's
relationships with wealth managers and
intermediaries and evolving investment
strategies.
In short, it's the speed of IHT relief at only 2 years, retaining
ownership of the assets as opposed to giving them away,
the ability to access the funds usually within a short notice
period, and the simplicity of setting it up.
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Table of Contents for the Digital Edition of Onside Issue 3 - Summer 2015
Contents
Onside Issue 3 - Summer 2015 - Cover1
Onside Issue 3 - Summer 2015 - Cover2
Onside Issue 3 - Summer 2015 - Contents
Onside Issue 3 - Summer 2015 - 4
Onside Issue 3 - Summer 2015 - 5
Onside Issue 3 - Summer 2015 - 6
Onside Issue 3 - Summer 2015 - 7
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Onside Issue 3 - Summer 2015 - Cover3
Onside Issue 3 - Summer 2015 - Cover4
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