Defaqto has added fresh ratings to help advisers and consumers choose tax efficient investments.
The company has announced the addition of star and diamond ratings for Aim and unlisted business relief services.
The two types of investment are intended to qualify for business relief meaning they can fall outside of an investors estate for investment tax purposes.
Defaqto claimed the investments are widely recommended by advisers for older clients who are concerned about inheritance tax but reluctant to cede control of their assets.
John Milliken, CEO of Defaqto, said: “This launch confirms our ongoing commitment to supporting advisers and consumers looking at the tax-advantaged investment market."
It comes after Defaqto bought tax-advantaged investments specialist MICAP in July last year and introduced ratings for EIS funds and VCTs in November.
Milliken added: “By combining Defaqto’s technology and understanding of financial planners’ needs with MICAP’s specialist data, we will help advisers when they discuss tax-advantaged investment options with their clients, and also when they evidence their recommendations."
MICAP provides of independent research and advice tools on tax-advantaged products and is used by more than 1,000 financial advisers and wealth management firms.
The new star and diamond ratings use this data on the tax-advantaged market and apply Defaqto’s methodology to assess the quality and performance.
Defaqto has been providing star ratings since 2015.
tara.o'connor@ft.com
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