A Bare Trust (also known as a 'Simple Trust') is one where the Beneficiary, the person who benefits from the trust assets, has an immediate and absolute right to both the trust capital and the income received by the trust from that capital.
The person who sets up a Bare Trust (Settlor) can be certain that the assets they set aside will go directly to the beneficiaries they intend, because once the trust has been set up, the beneficiaries cannot be changed. The Trust assets are held in the name of the Trustee, who administers the Trust, and has no discretion over what income or capital shall pass to the beneficiaries.
In the case of SBRT, the Trust is established with the Settlor also named as the sole Beneficiary, so that on death the Trust assets pass back into their estate. As all of the assets held within SBRT are Business Relief qualifying shares, assuming that they have all been held for a minimum period of two years when death occurs, they are deemed to be outside of the individuals estate for IHT purposes and qualify for Business Relief at the rate of 100% of their original consideration, or their value on death, whichever is the greater.
The Soteria Business Relief Trust (SBRT) is a tax efficient Bare Trust Account. It has been designed with UK inheritance tax mitigation in mind and helps you and your family plan for the future by utilising Business Relief, an initiative that is made available by HMRC.
Business Property Relief (BPR), now known as Business Relief (BR) has been an established part of inheritance tax legislation since 1976 and as an investment incentive, is relatively straightforward. Once you have owned BR qualifying shares for at least two years, they can be passed on to your loved ones free from inheritance tax, upon your death.
BR is a well-established relief which has been helping people to reduce their IHT exposure for over 40 years. You should keep in mind that the value of an investment may go down as well as up and you may not get back what you originally put in. It’s also possible that tax rules may change in the future and that the value of tax relief is dependent upon the amount you invest as well as your personal circumstances.
The Account and Technical & Operational Guides below aim to explain SBRT in detail. If, after reading them you still have questions, you should contact your financial adviser, or alternatively feel free to contact us directly. We do not give financial or tax advice but we are able to answer any product specific questions and introduce you to professional advisers, should the need arise.
We ask that you follow these steps to ensure that your account is structured correctly and in accordance with your individual circumstances.
Be sure to read about all of the features and benefits, as well as the ‘What are the risks?’ section on page 8 of the account guide before proceeding to open an account. We also recommend that you speak with an independent financial adviser before making any investment decisions.
The Soteria Business Relief Trust is a simple Bare Trust and not a recognised pension plan or discretionary trust in Hong Kong or elsewhere. As such it does not benefit from any of the double taxation agreements shown on this website.
This website is for informational purposes only and does not constitute an offer or solicitation to sell any products or services presented here. The operators of Soteria Business Relief Trust reserve the right to change, modify, add or remove sections of any content posted on this website at any time without notice and without liability. Those who access this site do so at their own initiative and are responsible for compliance with any laws or regulations applicable to them.
None of the information is intended to form the basis for any investment decision, and no specific recommendations are intended. If you would like investment, accounting, tax or legal advice, you should consult with your own advisors with respect to your individual circumstances and needs. Accordingly, this website does not constitute investment or tax advice, nor a solicitation for investment in any security, or life insurance product.
Any decision to apply and open an account is yours and yours alone. The Trustee of Soteria Business Relief Trust does not give advice on assets held within the Trust. Their role is that of Trustee and Administrator of a Bare Trust which is not a tax evasion scheme. Any attempt by an account holder to abuse Soteria Business Relief Trust, its Trustee, Administrator and/or Promoters may result in the member losing recognition of their benefits. The Soteria Business Relief Trust is a brand operated by Business Class Group Limited.
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