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Connaught launches new IHT-efficient Agri business
Following on from its successful Income Fund series, Connaught Asset Management, the boutique asset manager, has today (14th July 2011) announced the launch of the Connaught Business Partnership, Series 1.
The Business Partnership will purchase carefully selected farm businesses, including associated farm assets such as land, outbuildings, and stock. The purchase releases capital to the incumbent farmer who will normally be engaged to help work the farm with the partnership for a period of three years at which point the farm is either purchased back by the original farmer, or the farm will be kept, or sold, by the partnership.
Each quarter the Partnership will aim to distribute income at a targeted annualised rate of 4%. The partnership will also distribute any capital gains arising from the sale of a farm.
The partnership has been designed such that participants will benefit from business property relief which mitigates inheritance tax on a gift of a partnership share after the participation has been held for two years or more. Entrepreneurs' relief may also be available if the participation has been held for the required period. Investors in the exempt unit trust should instead not be liable for tax on any accrued chargeable gains on the disposal of any farm by the partnership.
Alistair Mawdsley, Director of Connaught, commented:
“We are delighted to be launching The Business Partnership and to be extending our products further into the alternative assets arena. Our core supporters asked us to design an opportunity which also has the potential to mitigate IHT and after 18 months of research and development believe that we have created a very attractive proposition for this market.
“We have now received clearance from HMRC regarding the suitability of The Business Partnership for IHT relief and felt that with uncertainty creeping back into some investment areas we would bring forward the launch of the partnership to July from September.”
The Business Partnership is set up as a limited partnership with an independent operator and administrator. The limited partnership will have an attendant exempt unit trust for those entities unable to participate in limited partnerships.
For more information on Connaught Asset Management and The Business Partnership please visit: www.connaughtam.com, or contact Alistair Mawdsley on 020 8971 9727.
For further information please contact:
Alistair Mawdsley, Director, Connaught Asset Management, Tel: 020 8971 9727; alistair.mawdsley@
James Allen, New Funds Director, Connaught Asset Management, Tel: 020 8971 9725; james.allen@
Rob Griffiths, Director, White Dragon Communications Ltd, Tel: 01483 549282; Mobile: 07983 641566
Notes to editors:
About Connaught Asset Management
• Connaught Asset Management was formed in February 2007 to research and offer asset-backed lending and non-correlated investment opportunities into the investment market, based and secured against tangible assets to minimise investment risk and offer investors and institutions innovative ways to diversify their investments.
• Over the last two years Connaught has designed a series of income funds which have continued to perform despite the volatility in many markets world-wide and historically very low interest rates, offering investors a fixed annualised return of between 7.15% and 9%.
• The Connaught Income Fund, Series 2, is offered through Connaught’s regulated Guernsey-based subsidiary, Connaught Asset Management (Guernsey) Limited. Series 2 lends in to the residential housing market for the short to medium-term with a targeted overall Fund maturity of 18 months and has the option of investing up to 10% in commercial property. Connaught Income Fund, Series 3, moves away from the urban environment in to the agricultural lending sector acting as a portfolio diversifier for investors who already hold investments in Series 1. The average LTV is targeted at 65%.
• These funds epitomise the philosophy of Connaught and with no correlation to Bank of England base rates will continue to be attractive to investors wishing to find alternative income solutions.
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