The service will offer investment opportunities in shares listed on the Alternative Investment Market (AIM) and will provide exemption from IHT through business property relief (BPR).  The diversified portfolio will be made up of 25 to 45 shares across a range of industries with solid earnings growth potential, Sanlam says.

Investors will be able to hold the shares in an ISA or SIPP (self invested personal pension), and can add or withdraw money at any time. Each stock will go through an extensive screening process to try to ensure qualification for BPR as well as reassuring investors of the potential for long-term growth.

While investing in smaller companies can offer attractive valuations, diversification and the potential for higher returns, it is often perceived as higher risk. The service bears an initial charge of 1.5% plus an annual management fee of 2% plus VAT is levied on the portfolio.

Charlie Parker, head of portfolio management at Sanlam UK said: ‘With the launch of this new service, Sanlam UK reinforces its commitment to providing the best wealth and inheritance management strategies and solutions possible to our clients.

‘A forward-looking approach is vital when it comes to protecting and planning your family’s wealth for future generations. This IHT service offers clients a straightforward, effective and flexible way to accrue and pass on wealth.’