CTC

Objective

To achieve 100% Inheritance Tax (IHT) protection using Business Property Relief whilst seeking a modest, consistent medium term return and minimising risk to capital.

Highlights

• 100% IHT relief normally available after 2 years using Business Property Relief
• Client retains ownership and ultimate control, with no gifting or trusts involved
• Opportunity to participate in a range of asset-backed trades including residential and commercial property development, farming, pubs and self storage.
• Risk reduction through Diversification
• Proven track record of meeting its objectives
• All sourcing of trading opportunities and administration carried out by Alpha
• The scheme has been running for over 14 years and has over 1500 companies in operation totalling £149million assets under management (as at 1 June 2010)
  

Key Risks

• Investment is in a private limited company which has no secondary market. Value is realised by the sale of the underlying trading activities. Under certain market conditions, investors seeking to redeem their holdings may experience significant delays.
• Furthermore, the value of the real property concerned will generally be a matter of valuer's opinion, rather than fact, and may fall as well as rise.
• Investment is only possible via the Information Memorandum which includes further risk disclosure.

100% IHT Protection

CTC is designed to achieve IHT protection for investors' capital through investment in asset backed trades which usually, under current rules and a two year qualifying period, qualify for 100% business property relief. During CTC's 14 year history more than 130 CTC shareholdings have been transferred on death, with probates approved unchallenged by HM Revenue & Customs.

Conservative Investment Strategies

CTC seeks to preserve capital, and offer the potential for capital growth, through investment in a wide range of qualifying trades. Trades are not geared and are based on a conservative strategy which puts capital preservation as its priority. All potential trades are approved by the Alpha Investment Committee before being offered to investors.

Further diversification is offered by the typical number of trades into which investors may be subscribed. An investor investing £100,000 in CTC would typically be invested into between six and eight partnerships by the end of the two year qualifying period. Trades launched to date include, residential and commercial property development, commercial forestry, managed public houses, self-storage facilities and farmland partnerships.

Investor control

Investors and their advisors can opt to retain control of their allocation strategy and choose the individual schemes into which their companies are invested. Alternatively, investors can delegate that responsibility to the team at Alpha who will ensure a diversified portfolio is constructed. Either way, investors retain ultimate control over their investment and, should the need arise, have the option to liquidate their companies whenever they should so choose. Although under certain market conditions, this may take some considerable time.

Who should invest?

This opportunity is targeted at, applicants whose personal wealth is sufficient for their estate to have a potential IHT liability and who wish to take steps to seek to mitigate that liability.

Structure

Fees

Minimum investment: £100,000 (£75,000 each for multiple applications)

* of amount invested
# only charged when capital is 'employed'