UK Fund Mitigates Taxes for Bulgarian Property Investments
A new investment fund promises to mitigate inheritance tax bills while taking a punt on the Bulgarian property market, the UK newspaper Daily Telegraph reported.
According to the article the Black Sea Property Fund, being launched by Development Capital Management (DCM), is a seven-year savings plan investing in holiday homes and ski-region developments in Bulgaria.
Investors have a choice between property shares, which will have full exposure to the market, or a capital protected option underwritten by Foreign & Colonial. The second option will mean lower potential returns but guarantees to pay back investors' capital outlay - a minimum of £30,000 - at the end of the term.
The fund has been set up as an offshore investment company and will be listed on Aim, thereby avoiding inheritance tax - provided it is held for a minimum of two years. Even if the investment turns out to be a dud, the money put in is effectively removed from a person's estate for IHT purposes.
A new investment fund promises to mitigate inheritance tax bills while taking a punt on the Bulgarian property market, the UK newspaper Daily Telegraph reported.
According to the article the Black Sea Property Fund, being launched by Development Capital Management (DCM), is a seven-year savings plan investing in holiday homes and ski-region developments in Bulgaria.
Investors have a choice between property shares, which will have full exposure to the market, or a capital protected option underwritten by Foreign & Colonial. The second option will mean lower potential returns but guarantees to pay back investors' capital outlay - a minimum of £30,000 - at the end of the term.
The fund has been set up as an offshore investment company and will be listed on Aim, thereby avoiding inheritance tax - provided it is held for a minimum of two years. Even if the investment turns out to be a dud, the money put in is effectively removed from a person's estate for IHT purposes.
